Correlation Between Enerjisa Enerji and Burcelik Vana
Can any of the company-specific risk be diversified away by investing in both Enerjisa Enerji and Burcelik Vana 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 Enerjisa Enerji and Burcelik Vana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enerjisa Enerji AS and Burcelik Vana Sanayi, you can compare the effects of market volatilities on Enerjisa Enerji and Burcelik Vana 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 Enerjisa Enerji with a short position of Burcelik Vana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enerjisa Enerji and Burcelik Vana.
Diversification Opportunities for Enerjisa Enerji and Burcelik Vana
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Enerjisa and Burcelik is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Enerjisa Enerji AS and Burcelik Vana Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Burcelik Vana Sanayi and Enerjisa Enerji 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 Enerjisa Enerji AS are associated (or correlated) with Burcelik Vana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Burcelik Vana Sanayi has no effect on the direction of Enerjisa Enerji i.e., Enerjisa Enerji and Burcelik Vana go up and down completely randomly.
Pair Corralation between Enerjisa Enerji and Burcelik Vana
Assuming the 90 days trading horizon Enerjisa Enerji is expected to generate 2.06 times less return on investment than Burcelik Vana. But when comparing it to its historical volatility, Enerjisa Enerji AS is 1.78 times less risky than Burcelik Vana. It trades about 0.06 of its potential returns per unit of risk. Burcelik Vana Sanayi is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 3,412 in Burcelik Vana Sanayi on October 13, 2024 and sell it today you would earn a total of 7,668 from holding Burcelik Vana Sanayi or generate 224.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enerjisa Enerji AS vs. Burcelik Vana Sanayi
Performance |
| Timeline |
| Enerjisa Enerji AS |
| Burcelik Vana Sanayi |
Enerjisa Enerji and Burcelik Vana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enerjisa Enerji and Burcelik Vana
The main advantage of trading using opposite Enerjisa Enerji and Burcelik Vana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enerjisa Enerji position performs unexpectedly, Burcelik Vana 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 Burcelik Vana will offset losses from the drop in Burcelik Vana's long position.| Enerjisa Enerji vs. Eregli Demir ve | Enerjisa Enerji vs. Turkiye Sise ve | Enerjisa Enerji vs. Tofas Turk Otomobil | Enerjisa Enerji vs. Ford Otomotiv Sanayi |
| Burcelik Vana vs. Politeknik Metal Sanayi | Burcelik Vana vs. MEGA METAL | Burcelik Vana vs. Mackolik Internet Hizmetleri | Burcelik Vana vs. Turkiye Kalkinma Bankasi |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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