Correlation Between SASA Polyester and ENKA Insaat

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

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

Diversification Opportunities for SASA Polyester and ENKA Insaat

-0.12

Correlation Coefficient

SASA Polyester  ENKA Insaat

Good diversification

The 3 months correlation between SASA and ENKA is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding SASA Polyester Sanayi 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 SASA Polyester 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 SASA Polyester Sanayi 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 SASA Polyester i.e., SASA Polyester and ENKA Insaat go up and down completely randomly.

Pair Corralation between SASA Polyester and ENKA Insaat

Assuming the 90 days trading horizon SASA Polyester is expected to generate 3.8 times less return on investment than ENKA Insaat. In addition to that, SASA Polyester is 1.49 times more volatile than ENKA Insaat ve. It trades about 0.09 of its total potential returns per unit of risk. ENKA Insaat ve is currently generating about 0.5 per unit of volatility. If you would invest  4,858  in ENKA Insaat ve on December 30, 2024 and sell it today you would earn a total of  1,507  from holding ENKA Insaat ve or generate 31.02% return on investment over 90 days.

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

SASA Polyester Sanayi  vs.  ENKA Insaat ve

SASA Polyester Sanayi

Risk-Adjusted Performance

Very Weak

Over the last 90 days SASA Polyester Sanayi has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest inconsistent performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

ENKA Insaat ve

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in ENKA Insaat ve are ranked lower than 13 (%) 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.

Pair Trading with SASA Polyester and ENKA Insaat

The main advantage of trading using opposite SASA Polyester and ENKA Insaat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SASA Polyester 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 SASA Polyester Sanayi 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.