Correlation Between ENKA Insaat and Turkiye Sinai
Can any of the company-specific risk be diversified away by investing in both ENKA Insaat and Turkiye Sinai at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining ENKA Insaat and Turkiye Sinai into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ENKA Insaat ve and Turkiye Sinai Kalkinma, you can compare the effects of market volatilities on ENKA Insaat and Turkiye Sinai and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in ENKA Insaat with a short position of Turkiye Sinai. Check out your portfolio center. Please also check ongoing floating volatility patterns of ENKA Insaat and Turkiye Sinai.
Diversification Opportunities for ENKA Insaat and Turkiye Sinai
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between ENKA and Turkiye is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding ENKA Insaat ve and Turkiye Sinai Kalkinma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkiye Sinai Kalkinma and ENKA Insaat is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on ENKA Insaat ve are associated (or correlated) with Turkiye Sinai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turkiye Sinai Kalkinma has no effect on the direction of ENKA Insaat i.e., ENKA Insaat and Turkiye Sinai go up and down completely randomly.
Pair Corralation between ENKA Insaat and Turkiye Sinai
Assuming the 90 days trading horizon ENKA Insaat is expected to generate 1.61 times less return on investment than Turkiye Sinai. But when comparing it to its historical volatility, ENKA Insaat ve is 1.34 times less risky than Turkiye Sinai. It trades about 0.08 of its potential returns per unit of risk. Turkiye Sinai Kalkinma is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 230.00 in Turkiye Sinai Kalkinma on February 21, 2024 and sell it today you would earn a total of 861.00 from holding Turkiye Sinai Kalkinma or generate 374.35% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 99.2% |
Values | Daily Returns |
ENKA Insaat ve vs. Turkiye Sinai Kalkinma
Performance |
Timeline |
ENKA Insaat ve |
Turkiye Sinai Kalkinma |
ENKA Insaat and Turkiye Sinai Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ENKA Insaat and Turkiye Sinai
The main advantage of trading using opposite ENKA Insaat and Turkiye Sinai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ENKA Insaat position performs unexpectedly, Turkiye Sinai can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Turkiye Sinai will offset losses from the drop in Turkiye Sinai's long position.ENKA Insaat vs. Turkiye Garanti Bankasi | ENKA Insaat vs. Turkiye Is Bankasi | ENKA Insaat vs. Turkiye Is Bankasi | ENKA Insaat vs. Akbank TAS |
Turkiye Sinai vs. Koc Holding AS | Turkiye Sinai vs. ENKA Insaat ve | Turkiye Sinai vs. Arcelik AS | Turkiye Sinai vs. Eregli Demir ve |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Valuation module to check real value of public entities based on technical and fundamental data.
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