Correlation Between Enerjisa Enerji and Saray Matbaacilik

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

Diversification Opportunities for Enerjisa Enerji and Saray Matbaacilik

0.08

Correlation Coefficient

Enerjisa Enerji  Saray Matbaacilik

Significant diversification

The 3 months correlation between Enerjisa and Saray is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Enerjisa Enerji AS and Saray Matbaacilik Kagitcilik in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saray Matbaacilik 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 Saray Matbaacilik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saray Matbaacilik has no effect on the direction of Enerjisa Enerji i.e., Enerjisa Enerji and Saray Matbaacilik go up and down completely randomly.

Pair Corralation between Enerjisa Enerji and Saray Matbaacilik

Assuming the 90 days trading horizon Enerjisa Enerji AS is expected to generate 0.53 times more return on investment than Saray Matbaacilik. However, Enerjisa Enerji AS is 1.9 times less risky than Saray Matbaacilik. It trades about 0.08 of its potential returns per unit of risk. Saray Matbaacilik Kagitcilik is currently generating about 0.03 per unit of risk. If you would invest  2,670  in Enerjisa Enerji AS on October 24, 2024 and sell it today you would earn a total of  3,490  from holding Enerjisa Enerji AS or generate 130.71% return on investment over 90 days.

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

Enerjisa Enerji AS  vs.  Saray Matbaacilik Kagitcilik

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.

Saray Matbaacilik

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Saray Matbaacilik Kagitcilik are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Saray Matbaacilik demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Enerjisa Enerji and Saray Matbaacilik

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

The idea behind Enerjisa Enerji AS and Saray Matbaacilik Kagitcilik 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.