Correlation Between Halk Gayrimenkul and Enerjisa Enerji

Can any of the company-specific risk be diversified away by investing in both Halk Gayrimenkul and Enerjisa Enerji 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 Halk Gayrimenkul and Enerjisa Enerji into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Halk Gayrimenkul Yatirim and Enerjisa Enerji AS, you can compare the effects of market volatilities on Halk Gayrimenkul and Enerjisa Enerji 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 Halk Gayrimenkul with a short position of Enerjisa Enerji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Halk Gayrimenkul and Enerjisa Enerji.

Diversification Opportunities for Halk Gayrimenkul and Enerjisa Enerji

0.22

Correlation Coefficient

Halk Gayrimenkul  Enerjisa Enerji

Modest diversification

The 3 months correlation between Halk and Enerjisa is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Halk Gayrimenkul Yatirim and Enerjisa Enerji AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enerjisa Enerji AS and Halk Gayrimenkul 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 Halk Gayrimenkul Yatirim are associated (or correlated) with Enerjisa Enerji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enerjisa Enerji AS has no effect on the direction of Halk Gayrimenkul i.e., Halk Gayrimenkul and Enerjisa Enerji go up and down completely randomly.

Pair Corralation between Halk Gayrimenkul and Enerjisa Enerji

Assuming the 90 days trading horizon Halk Gayrimenkul Yatirim is expected to generate 1.32 times more return on investment than Enerjisa Enerji. However, Halk Gayrimenkul is 1.32 times more volatile than Enerjisa Enerji AS. It trades about 0.03 of its potential returns per unit of risk. Enerjisa Enerji AS is currently generating about -0.04 per unit of risk. If you would invest  266.00  in Halk Gayrimenkul Yatirim on December 29, 2024 and sell it today you would earn a total of  9.00  from holding Halk Gayrimenkul Yatirim or generate 3.38% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.46%
Values	Daily Returns

Halk Gayrimenkul Yatirim  vs.  Enerjisa Enerji AS

Halk Gayrimenkul Yatirim

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Halk Gayrimenkul Yatirim are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Halk Gayrimenkul may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Enerjisa Enerji AS

Risk-Adjusted Performance

Very Weak

Over the last 90 days Enerjisa Enerji AS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's forward indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with Halk Gayrimenkul and Enerjisa Enerji

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

The idea behind Halk Gayrimenkul Yatirim and Enerjisa Enerji 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..