Correlation Between ENKA Insaat and Kontrolmatik Teknoloji

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

Diversification Opportunities for ENKA Insaat and Kontrolmatik Teknoloji

0.6

Correlation Coefficient

ENKA Insaat  Kontrolmatik Teknoloji

Poor diversification

The 3 months correlation between ENKA and Kontrolmatik is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding ENKA Insaat ve and Kontrolmatik Teknoloji Enerji in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kontrolmatik Teknoloji 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 Kontrolmatik Teknoloji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kontrolmatik Teknoloji has no effect on the direction of ENKA Insaat i.e., ENKA Insaat and Kontrolmatik Teknoloji go up and down completely randomly.

Pair Corralation between ENKA Insaat and Kontrolmatik Teknoloji

Assuming the 90 days trading horizon ENKA Insaat ve is expected to generate 0.91 times more return on investment than Kontrolmatik Teknoloji. However, ENKA Insaat ve is 1.09 times less risky than Kontrolmatik Teknoloji. It trades about 0.08 of its potential returns per unit of risk. Kontrolmatik Teknoloji Enerji is currently generating about 0.0 per unit of risk. If you would invest  4,442  in ENKA Insaat ve on October 10, 2024 and sell it today you would earn a total of  548.00  from holding ENKA Insaat ve or generate 12.34% 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.  Kontrolmatik Teknoloji Enerji

ENKA Insaat ve

Risk-Adjusted Performance

6 of 100

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 uncertain forward indicators, ENKA Insaat demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Kontrolmatik Teknoloji

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Kontrolmatik Teknoloji Enerji has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Kontrolmatik Teknoloji is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with ENKA Insaat and Kontrolmatik Teknoloji

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

The idea behind ENKA Insaat ve and Kontrolmatik Teknoloji Enerji 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.