Correlation Between ENKA Insaat and Deva Holding
Can any of the company-specific risk be diversified away by investing in both ENKA Insaat and Deva Holding 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 ENKA Insaat and Deva Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ENKA Insaat ve and Deva Holding AS, you can compare the effects of market volatilities on ENKA Insaat and Deva Holding 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 ENKA Insaat with a short position of Deva Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of ENKA Insaat and Deva Holding.
Diversification Opportunities for ENKA Insaat and Deva Holding
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ENKA and Deva is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding ENKA Insaat ve and Deva Holding AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deva Holding AS and ENKA Insaat 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 ENKA Insaat ve are associated (or correlated) with Deva Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deva Holding AS has no effect on the direction of ENKA Insaat i.e., ENKA Insaat and Deva Holding go up and down completely randomly.
Pair Corralation between ENKA Insaat and Deva Holding
Assuming the 90 days trading horizon ENKA Insaat ve is expected to generate 0.89 times more return on investment than Deva Holding. However, ENKA Insaat ve is 1.13 times less risky than Deva Holding. It trades about 0.05 of its potential returns per unit of risk. Deva Holding AS is currently generating about 0.03 per unit of risk. If you would invest 3,250 in ENKA Insaat ve on September 25, 2024 and sell it today you would earn a total of 1,860 from holding ENKA Insaat ve or generate 57.23% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 99.19% |
Values | Daily Returns |
ENKA Insaat ve vs. Deva Holding AS
Performance |
Timeline |
ENKA Insaat ve |
Deva Holding AS |
ENKA Insaat and Deva Holding Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ENKA Insaat and Deva Holding
The main advantage of trading using opposite ENKA Insaat and Deva Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ENKA Insaat position performs unexpectedly, Deva Holding 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 Deva Holding will offset losses from the drop in Deva Holding's long position.ENKA Insaat vs. Eregli Demir ve | ENKA Insaat vs. Turkiye Petrol Rafinerileri | ENKA Insaat vs. Turkish Airlines | ENKA Insaat vs. Ford Otomotiv Sanayi |
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Check out your portfolio center.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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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