Correlation Between ENKA Insaat and Yukselen Celik

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

Diversification Opportunities for ENKA Insaat and Yukselen Celik

-0.13

Correlation Coefficient

ENKA Insaat  Yukselen Celik

Good diversification

The 3 months correlation between ENKA and Yukselen is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding ENKA Insaat ve and Yukselen Celik As in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yukselen Celik As 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 Yukselen Celik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yukselen Celik As has no effect on the direction of ENKA Insaat i.e., ENKA Insaat and Yukselen Celik go up and down completely randomly.

Pair Corralation between ENKA Insaat and Yukselen Celik

Assuming the 90 days trading horizon ENKA Insaat ve is expected to under-perform the Yukselen Celik. In addition to that, ENKA Insaat is 1.04 times more volatile than Yukselen Celik As. It trades about -0.23 of its total potential returns per unit of risk. Yukselen Celik As is currently generating about 0.05 per unit of volatility. If you would invest  758.00  in Yukselen Celik As on October 11, 2024 and sell it today you would earn a total of  12.00  from holding Yukselen Celik As or generate 1.58% return on investment over 90 days.

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

ENKA Insaat ve  vs.  Yukselen Celik As

ENKA Insaat ve

Risk-Adjusted Performance

4 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in ENKA Insaat ve are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain forward indicators, ENKA Insaat may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Yukselen Celik As

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days Yukselen Celik As has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Yukselen Celik 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 Yukselen Celik

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

The idea behind ENKA Insaat ve and Yukselen Celik As 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.