Correlation Between ANT and ENKA Insaat
Can any of the company-specific risk be diversified away by investing in both ANT 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 ANT and ENKA Insaat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANT and ENKA Insaat ve, you can compare the effects of market volatilities on ANT 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 ANT with a short position of ENKA Insaat. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANT and ENKA Insaat.
Diversification Opportunities for ANT and ENKA Insaat
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ANT and ENKA is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding ANT 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 ANT 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 ANT 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 ANT i.e., ANT and ENKA Insaat go up and down completely randomly.
Pair Corralation between ANT and ENKA Insaat
Assuming the 90 days trading horizon ANT is expected to generate 11.04 times more return on investment than ENKA Insaat. However, ANT is 11.04 times more volatile than ENKA Insaat ve. It trades about 0.09 of its potential returns per unit of risk. ENKA Insaat ve is currently generating about -0.01 per unit of risk. If you would invest 147.00 in ANT on October 21, 2024 and sell it today you would earn a total of 0.00 from holding ANT or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ANT vs. ENKA Insaat ve
Performance |
| Timeline |
| ANT |
| ENKA Insaat ve |
ANT and ENKA Insaat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANT and ENKA Insaat
The main advantage of trading using opposite ANT and ENKA Insaat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANT 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 ANT 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.| ENKA Insaat vs. BIM Birlesik Magazalar | ENKA Insaat vs. Haci Omer Sabanci | ENKA Insaat vs. AG Anadolu Group | ENKA Insaat vs. Sok Marketler Ticaret |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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