Correlation Between Enerjisa Enerji and Kimteks Poliuretan
Can any of the company-specific risk be diversified away by investing in both Enerjisa Enerji and Kimteks Poliuretan 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 Kimteks Poliuretan 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 Kimteks Poliuretan Sanayi, you can compare the effects of market volatilities on Enerjisa Enerji and Kimteks Poliuretan 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 Kimteks Poliuretan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enerjisa Enerji and Kimteks Poliuretan.
Diversification Opportunities for Enerjisa Enerji and Kimteks Poliuretan
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Enerjisa and Kimteks is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Enerjisa Enerji AS and Kimteks Poliuretan Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kimteks Poliuretan 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 Kimteks Poliuretan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kimteks Poliuretan Sanayi has no effect on the direction of Enerjisa Enerji i.e., Enerjisa Enerji and Kimteks Poliuretan go up and down completely randomly.
Pair Corralation between Enerjisa Enerji and Kimteks Poliuretan
Assuming the 90 days trading horizon Enerjisa Enerji AS is expected to generate 1.48 times more return on investment than Kimteks Poliuretan. However, Enerjisa Enerji is 1.48 times more volatile than Kimteks Poliuretan Sanayi. It trades about 0.07 of its potential returns per unit of risk. Kimteks Poliuretan Sanayi is currently generating about -0.07 per unit of risk. If you would invest 5,935 in Enerjisa Enerji AS on October 20, 2024 and sell it today you would earn a total of 195.00 from holding Enerjisa Enerji AS or generate 3.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enerjisa Enerji AS vs. Kimteks Poliuretan Sanayi
Performance |
| Timeline |
| Enerjisa Enerji AS |
| Kimteks Poliuretan Sanayi |
Enerjisa Enerji and Kimteks Poliuretan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enerjisa Enerji and Kimteks Poliuretan
The main advantage of trading using opposite Enerjisa Enerji and Kimteks Poliuretan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enerjisa Enerji position performs unexpectedly, Kimteks Poliuretan 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 Kimteks Poliuretan will offset losses from the drop in Kimteks Poliuretan'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 |
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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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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