Correlation Between Enerjisa Enerji and Vakif Gayrimenkul

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

Diversification Opportunities for Enerjisa Enerji and Vakif Gayrimenkul

0.88

Correlation Coefficient

Enerjisa Enerji  Vakif Gayrimenkul

Very poor diversification

The 3 months correlation between Enerjisa and Vakif is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Enerjisa Enerji AS and Vakif Gayrimenkul Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vakif Gayrimenkul Yatirim 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 Vakif Gayrimenkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vakif Gayrimenkul Yatirim has no effect on the direction of Enerjisa Enerji i.e., Enerjisa Enerji and Vakif Gayrimenkul go up and down completely randomly.

Pair Corralation between Enerjisa Enerji and Vakif Gayrimenkul

Assuming the 90 days trading horizon Enerjisa Enerji is expected to generate 1.97 times less return on investment than Vakif Gayrimenkul. But when comparing it to its historical volatility, Enerjisa Enerji AS is 1.37 times less risky than Vakif Gayrimenkul. It trades about 0.11 of its potential returns per unit of risk. Vakif Gayrimenkul Yatirim is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  161.00  in Vakif Gayrimenkul Yatirim on October 24, 2024 and sell it today you would earn a total of  42.00  from holding Vakif Gayrimenkul Yatirim or generate 26.09% return on investment over 90 days.

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

Enerjisa Enerji AS  vs.  Vakif Gayrimenkul Yatirim

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.

Vakif Gayrimenkul Yatirim

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Vakif Gayrimenkul Yatirim are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Vakif Gayrimenkul demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Enerjisa Enerji and Vakif Gayrimenkul

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

The idea behind Enerjisa Enerji AS and Vakif Gayrimenkul Yatirim 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.