Correlation Between ENKA Insaat and Gubre Fabrikalari
Can any of the company-specific risk be diversified away by investing in both ENKA Insaat and Gubre Fabrikalari 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 Gubre Fabrikalari 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 Gubre Fabrikalari TAS, you can compare the effects of market volatilities on ENKA Insaat and Gubre Fabrikalari 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 Gubre Fabrikalari. Check out your portfolio center. Please also check ongoing floating volatility patterns of ENKA Insaat and Gubre Fabrikalari.
Diversification Opportunities for ENKA Insaat and Gubre Fabrikalari
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ENKA and Gubre is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding ENKA Insaat ve and Gubre Fabrikalari TAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gubre Fabrikalari TAS 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 Gubre Fabrikalari. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gubre Fabrikalari TAS has no effect on the direction of ENKA Insaat i.e., ENKA Insaat and Gubre Fabrikalari go up and down completely randomly.
Pair Corralation between ENKA Insaat and Gubre Fabrikalari
Assuming the 90 days trading horizon ENKA Insaat ve is expected to under-perform the Gubre Fabrikalari. In addition to that, ENKA Insaat is 1.23 times more volatile than Gubre Fabrikalari TAS. It trades about -0.02 of its total potential returns per unit of risk. Gubre Fabrikalari TAS is currently generating about 0.62 per unit of volatility. If you would invest 22,250 in Gubre Fabrikalari TAS on September 25, 2024 and sell it today you would earn a total of 5,625 from holding Gubre Fabrikalari TAS or generate 25.28% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
ENKA Insaat ve vs. Gubre Fabrikalari TAS
Performance |
Timeline |
ENKA Insaat ve |
Gubre Fabrikalari TAS |
ENKA Insaat and Gubre Fabrikalari Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ENKA Insaat and Gubre Fabrikalari
The main advantage of trading using opposite ENKA Insaat and Gubre Fabrikalari positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ENKA Insaat position performs unexpectedly, Gubre Fabrikalari 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 Gubre Fabrikalari will offset losses from the drop in Gubre Fabrikalari'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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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