Correlation Between ENKA Insaat and Saray Matbaacilik

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

Diversification Opportunities for ENKA Insaat and Saray Matbaacilik

-0.43

Correlation Coefficient

ENKA Insaat  Saray Matbaacilik

Very good diversification

The 3 months correlation between ENKA and Saray is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding ENKA Insaat ve and Saray Matbaacilik Kagitcilik in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saray Matbaacilik 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 Saray Matbaacilik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saray Matbaacilik has no effect on the direction of ENKA Insaat i.e., ENKA Insaat and Saray Matbaacilik go up and down completely randomly.

Pair Corralation between ENKA Insaat and Saray Matbaacilik

Assuming the 90 days trading horizon ENKA Insaat ve is expected to generate 0.51 times more return on investment than Saray Matbaacilik. However, ENKA Insaat ve is 1.97 times less risky than Saray Matbaacilik. It trades about 0.07 of its potential returns per unit of risk. Saray Matbaacilik Kagitcilik is currently generating about 0.03 per unit of risk. If you would invest  2,573  in ENKA Insaat ve on October 24, 2024 and sell it today you would earn a total of  2,452  from holding ENKA Insaat ve or generate 95.3% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	99.19%
Values	Daily Returns

ENKA Insaat ve  vs.  Saray Matbaacilik Kagitcilik

ENKA Insaat ve

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in ENKA Insaat ve are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward indicators, ENKA Insaat is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

Saray Matbaacilik

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Saray Matbaacilik Kagitcilik are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Saray Matbaacilik demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ENKA Insaat and Saray Matbaacilik

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

The idea behind ENKA Insaat ve and Saray Matbaacilik Kagitcilik 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.