Correlation Between Girisim Elektrik and ENKA Insaat

Can any of the company-specific risk be diversified away by investing in both Girisim Elektrik and ENKA Insaat 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 Girisim Elektrik and ENKA Insaat into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Girisim Elektrik Taahhut and ENKA Insaat ve, you can compare the effects of market volatilities on Girisim Elektrik and ENKA Insaat 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 Girisim Elektrik with a short position of ENKA Insaat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Girisim Elektrik and ENKA Insaat.

Diversification Opportunities for Girisim Elektrik and ENKA Insaat

0.57

Correlation Coefficient

Girisim Elektrik  ENKA Insaat

Very weak diversification

The 3 months correlation between Girisim and ENKA is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Girisim Elektrik Taahhut and ENKA Insaat ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENKA Insaat ve and Girisim Elektrik 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 Girisim Elektrik Taahhut are associated (or correlated) with ENKA Insaat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENKA Insaat ve has no effect on the direction of Girisim Elektrik i.e., Girisim Elektrik and ENKA Insaat go up and down completely randomly.

Pair Corralation between Girisim Elektrik and ENKA Insaat

Assuming the 90 days trading horizon Girisim Elektrik Taahhut is expected to generate 1.18 times more return on investment than ENKA Insaat. However, Girisim Elektrik is 1.18 times more volatile than ENKA Insaat ve. It trades about 0.02 of its potential returns per unit of risk. ENKA Insaat ve is currently generating about -0.02 per unit of risk. If you would invest  4,600  in Girisim Elektrik Taahhut on October 22, 2024 and sell it today you would earn a total of  16.00  from holding Girisim Elektrik Taahhut or generate 0.35% return on investment over 90 days.

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

Girisim Elektrik Taahhut  vs.  ENKA Insaat ve

Girisim Elektrik Taahhut

Risk-Adjusted Performance

4 of 100

Insignificant

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

ENKA Insaat ve

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in ENKA Insaat ve are ranked lower than 3 (%) 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.

Pair Trading with Girisim Elektrik and ENKA Insaat

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

The idea behind Girisim Elektrik Taahhut and ENKA Insaat ve 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.