Correlation Between ENKA Insaat and Ingram Micro

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Can any of the company-specific risk be diversified away by investing in both ENKA Insaat and Ingram Micro 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 Ingram Micro 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 Ingram Micro Bilisim, you can compare the effects of market volatilities on ENKA Insaat and Ingram Micro 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 Ingram Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of ENKA Insaat and Ingram Micro.

Diversification Opportunities for ENKA Insaat and Ingram Micro

0.65
  Correlation Coefficient

Poor diversification

The 3 months correlation between ENKA and Ingram is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding ENKA Insaat ve and Ingram Micro Bilisim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ingram Micro Bilisim 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 Ingram Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ingram Micro Bilisim has no effect on the direction of ENKA Insaat i.e., ENKA Insaat and Ingram Micro go up and down completely randomly.

Pair Corralation between ENKA Insaat and Ingram Micro

Assuming the 90 days trading horizon ENKA Insaat ve is expected to under-perform the Ingram Micro. In addition to that, ENKA Insaat is 1.02 times more volatile than Ingram Micro Bilisim. It trades about -0.01 of its total potential returns per unit of risk. Ingram Micro Bilisim is currently generating about 0.06 per unit of volatility. If you would invest  42,200  in Ingram Micro Bilisim on October 7, 2024 and sell it today you would earn a total of  2,100  from holding Ingram Micro Bilisim or generate 4.98% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

ENKA Insaat ve  vs.  Ingram Micro Bilisim

 Performance 
       Timeline  
ENKA Insaat ve 

Risk-Adjusted Performance

6 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in ENKA Insaat ve are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak forward indicators, ENKA Insaat demonstrated solid returns over the last few months and may actually be approaching a breakup point.
Ingram Micro Bilisim 

Risk-Adjusted Performance

1 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Ingram Micro Bilisim are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward indicators, Ingram Micro is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

ENKA Insaat and Ingram Micro Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with ENKA Insaat and Ingram Micro

The main advantage of trading using opposite ENKA Insaat and Ingram Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ENKA Insaat position performs unexpectedly, Ingram Micro 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 Ingram Micro will offset losses from the drop in Ingram Micro's long position.
The idea behind ENKA Insaat ve and Ingram Micro Bilisim 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.
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.

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