Correlation Between Enerjisa Enerji and Vestel Beyaz

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

Diversification Opportunities for Enerjisa Enerji and Vestel Beyaz

-0.02

Correlation Coefficient

Enerjisa Enerji  Vestel Beyaz

Good diversification

The 3 months correlation between Enerjisa and Vestel is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Enerjisa Enerji AS and Vestel Beyaz Esya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vestel Beyaz Esya 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 Vestel Beyaz. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vestel Beyaz Esya has no effect on the direction of Enerjisa Enerji i.e., Enerjisa Enerji and Vestel Beyaz go up and down completely randomly.

Pair Corralation between Enerjisa Enerji and Vestel Beyaz

Assuming the 90 days trading horizon Enerjisa Enerji AS is expected to generate 1.37 times more return on investment than Vestel Beyaz. However, Enerjisa Enerji is 1.37 times more volatile than Vestel Beyaz Esya. It trades about 0.15 of its potential returns per unit of risk. Vestel Beyaz Esya is currently generating about 0.01 per unit of risk. If you would invest  5,570  in Enerjisa Enerji AS on October 6, 2024 and sell it today you would earn a total of  685.00  from holding Enerjisa Enerji AS or generate 12.3% return on investment over 90 days.

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

Enerjisa Enerji AS  vs.  Vestel Beyaz Esya

Enerjisa Enerji AS

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Enerjisa Enerji AS are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain forward indicators, Enerjisa Enerji may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Vestel Beyaz Esya

Risk-Adjusted Performance

0 of 100

Very Weak

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

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

The idea behind Enerjisa Enerji AS and Vestel Beyaz Esya 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.