Correlation Between ENKA Insaat and Ingram Micro
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 Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
ENKA Insaat ve vs. Ingram Micro Bilisim
Performance |
Timeline |
ENKA Insaat ve |
Ingram Micro Bilisim |
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.ENKA Insaat vs. Turkiye Sise ve | ENKA Insaat vs. Eregli Demir ve | ENKA Insaat vs. Koc Holding AS | ENKA Insaat vs. Haci Omer Sabanci |
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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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