Correlation Between Enerjisa Enerji and Seker Finansal

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

Diversification Opportunities for Enerjisa Enerji and Seker Finansal

0.24

Correlation Coefficient

Enerjisa Enerji  Seker Finansal

Modest diversification

The 3 months correlation between Enerjisa and Seker is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Enerjisa Enerji AS and Seker Finansal Kiralama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seker Finansal Kiralama 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 Seker Finansal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seker Finansal Kiralama has no effect on the direction of Enerjisa Enerji i.e., Enerjisa Enerji and Seker Finansal go up and down completely randomly.

Pair Corralation between Enerjisa Enerji and Seker Finansal

Assuming the 90 days trading horizon Enerjisa Enerji AS is expected to under-perform the Seker Finansal. But the stock apears to be less risky and, when comparing its historical volatility, Enerjisa Enerji AS is 1.23 times less risky than Seker Finansal. The stock trades about -0.03 of its potential returns per unit of risk. The Seker Finansal Kiralama is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest  765.00  in Seker Finansal Kiralama on December 24, 2024 and sell it today you would lose (42.00) from holding Seker Finansal Kiralama or give up 5.49% of portfolio value over 90 days.

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

Enerjisa Enerji AS  vs.  Seker Finansal Kiralama

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.

Seker Finansal Kiralama

Risk-Adjusted Performance

Very Weak

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

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

The idea behind Enerjisa Enerji AS and Seker Finansal Kiralama 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 Valuation module to check real value of public entities based on technical and fundamental data.