Correlation Between Enerjisa Enerji and Hitit Bilgisayar

Can any of the company-specific risk be diversified away by investing in both Enerjisa Enerji and Hitit Bilgisayar 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 Hitit Bilgisayar 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 Hitit Bilgisayar Hizmetleri, you can compare the effects of market volatilities on Enerjisa Enerji and Hitit Bilgisayar 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 Hitit Bilgisayar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enerjisa Enerji and Hitit Bilgisayar.

Diversification Opportunities for Enerjisa Enerji and Hitit Bilgisayar

-0.01

Correlation Coefficient

Enerjisa Enerji  Hitit Bilgisayar

Good diversification

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

Pair Corralation between Enerjisa Enerji and Hitit Bilgisayar

Assuming the 90 days trading horizon Enerjisa Enerji AS is expected to under-perform the Hitit Bilgisayar. But the stock apears to be less risky and, when comparing its historical volatility, Enerjisa Enerji AS is 1.24 times less risky than Hitit Bilgisayar. The stock trades about -0.03 of its potential returns per unit of risk. The Hitit Bilgisayar Hizmetleri is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest  4,562  in Hitit Bilgisayar Hizmetleri on December 23, 2024 and sell it today you would lose (310.00) from holding Hitit Bilgisayar Hizmetleri or give up 6.8% of portfolio value over 90 days.

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

Enerjisa Enerji AS  vs.  Hitit Bilgisayar Hizmetleri

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 recent stock price confusion, may contribute to short-horizon losses for the traders.

Hitit Bilgisayar Hiz

Risk-Adjusted Performance

Very Weak

Over the last 90 days Hitit Bilgisayar Hizmetleri has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Hitit Bilgisayar 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 Hitit Bilgisayar

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

The idea behind Enerjisa Enerji AS and Hitit Bilgisayar Hizmetleri 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..