Correlation Between Enerjisa Enerji and E Data

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

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

Diversification Opportunities for Enerjisa Enerji and E Data

0.14

Correlation Coefficient

Enerjisa Enerji  E Data

Average diversification

The 3 months correlation between Enerjisa and EDATA is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Enerjisa Enerji AS and E Data Teknoloji Pazarlama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E Data Teknoloji and Enerjisa Enerji 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 Enerjisa Enerji AS are associated (or correlated) with E Data. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E Data Teknoloji has no effect on the direction of Enerjisa Enerji i.e., Enerjisa Enerji and E Data go up and down completely randomly.

Pair Corralation between Enerjisa Enerji and E Data

Assuming the 90 days trading horizon Enerjisa Enerji AS is expected to generate 0.85 times more return on investment than E Data. However, Enerjisa Enerji AS is 1.18 times less risky than E Data. It trades about 0.11 of its potential returns per unit of risk. E Data Teknoloji Pazarlama is currently generating about 0.02 per unit of risk. If you would invest  5,480  in Enerjisa Enerji AS on October 24, 2024 and sell it today you would earn a total of  680.00  from holding Enerjisa Enerji AS or generate 12.41% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Enerjisa Enerji AS  vs.  E Data Teknoloji Pazarlama

Enerjisa Enerji AS

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Enerjisa Enerji AS are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Enerjisa Enerji demonstrated solid returns over the last few months and may actually be approaching a breakup point.

E Data Teknoloji

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in E Data Teknoloji Pazarlama are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward indicators, E Data is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Enerjisa Enerji and E Data

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

The idea behind Enerjisa Enerji AS and E Data Teknoloji Pazarlama 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.