Correlation Between Beyaz Filo and Enerjisa Enerji

Can any of the company-specific risk be diversified away by investing in both Beyaz Filo and Enerjisa Enerji 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 Beyaz Filo and Enerjisa Enerji into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Beyaz Filo Oto and Enerjisa Enerji AS, you can compare the effects of market volatilities on Beyaz Filo and Enerjisa Enerji 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 Beyaz Filo with a short position of Enerjisa Enerji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beyaz Filo and Enerjisa Enerji.

Diversification Opportunities for Beyaz Filo and Enerjisa Enerji

0.01

Correlation Coefficient

Beyaz Filo  Enerjisa Enerji

Significant diversification

The 3 months correlation between Beyaz and Enerjisa is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Beyaz Filo Oto and Enerjisa Enerji AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enerjisa Enerji AS and Beyaz Filo 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 Beyaz Filo Oto are associated (or correlated) with Enerjisa Enerji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enerjisa Enerji AS has no effect on the direction of Beyaz Filo i.e., Beyaz Filo and Enerjisa Enerji go up and down completely randomly.

Pair Corralation between Beyaz Filo and Enerjisa Enerji

Assuming the 90 days trading horizon Beyaz Filo Oto is expected to under-perform the Enerjisa Enerji. But the stock apears to be less risky and, when comparing its historical volatility, Beyaz Filo Oto is 1.09 times less risky than Enerjisa Enerji. The stock trades about -0.17 of its potential returns per unit of risk. The Enerjisa Enerji AS is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest  5,880  in Enerjisa Enerji AS on December 25, 2024 and sell it today you would lose (270.00) from holding Enerjisa Enerji AS or give up 4.59% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Beyaz Filo Oto  vs.  Enerjisa Enerji AS

Beyaz Filo Oto

Risk-Adjusted Performance

Very Weak

Over the last 90 days Beyaz Filo Oto has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Enerjisa Enerji AS

Risk-Adjusted Performance

Very Weak

Over the last 90 days Enerjisa Enerji AS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Enerjisa Enerji is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Beyaz Filo and Enerjisa Enerji

The main advantage of trading using opposite Beyaz Filo and Enerjisa Enerji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beyaz Filo position performs unexpectedly, Enerjisa Enerji 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 Enerjisa Enerji will offset losses from the drop in Enerjisa Enerji's long position.

The idea behind Beyaz Filo Oto and Enerjisa Enerji AS pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.