Correlation Between ENKA Insaat and Nigbas Nigde

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

Diversification Opportunities for ENKA Insaat and Nigbas Nigde

-0.3

Correlation Coefficient

ENKA Insaat  Nigbas Nigde

Very good diversification

The 3 months correlation between ENKA and Nigbas is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding ENKA Insaat ve and Nigbas Nigde Beton in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nigbas Nigde Beton 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 Nigbas Nigde. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nigbas Nigde Beton has no effect on the direction of ENKA Insaat i.e., ENKA Insaat and Nigbas Nigde go up and down completely randomly.

Pair Corralation between ENKA Insaat and Nigbas Nigde

Assuming the 90 days trading horizon ENKA Insaat ve is expected to generate 1.5 times more return on investment than Nigbas Nigde. However, ENKA Insaat is 1.5 times more volatile than Nigbas Nigde Beton. It trades about -0.26 of its potential returns per unit of risk. Nigbas Nigde Beton is currently generating about -0.39 per unit of risk. If you would invest  5,620  in ENKA Insaat ve on October 10, 2024 and sell it today you would lose (630.00) from holding ENKA Insaat ve or give up 11.21% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

ENKA Insaat ve  vs.  Nigbas Nigde Beton

ENKA Insaat ve

Risk-Adjusted Performance

6 of 100

Insignificant

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.

Nigbas Nigde Beton

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with ENKA Insaat and Nigbas Nigde

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

The idea behind ENKA Insaat ve and Nigbas Nigde Beton 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.