Correlation Between ENKA Insaat and Dow Jones
Can any of the company-specific risk be diversified away by investing in both ENKA Insaat and Dow Jones 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 ENKA Insaat and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ENKA Insaat ve and Dow Jones Industrial, you can compare the effects of market volatilities on ENKA Insaat and Dow Jones 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 ENKA Insaat with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of ENKA Insaat and Dow Jones.
Diversification Opportunities for ENKA Insaat and Dow Jones
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ENKA and Dow is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding ENKA Insaat ve and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and ENKA Insaat 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 ENKA Insaat ve are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of ENKA Insaat i.e., ENKA Insaat and Dow Jones go up and down completely randomly.
Pair Corralation between ENKA Insaat and Dow Jones
Assuming the 90 days trading horizon ENKA Insaat ve is expected to generate 3.16 times more return on investment than Dow Jones. However, ENKA Insaat is 3.16 times more volatile than Dow Jones Industrial. It trades about 0.11 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.13 per unit of risk. If you would invest 3,139 in ENKA Insaat ve on September 2, 2024 and sell it today you would earn a total of 2,106 from holding ENKA Insaat ve or generate 67.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.19% |
| Values | Daily Returns |
ENKA Insaat ve vs. Dow Jones Industrial
Performance |
| Timeline |
ENKA Insaat and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
ENKA Insaat ve
Pair trading matchups for ENKA Insaat
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with ENKA Insaat and Dow Jones
The main advantage of trading using opposite ENKA Insaat and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ENKA Insaat position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| ENKA Insaat vs. Turkiye Sise ve | ENKA Insaat vs. Eregli Demir ve | ENKA Insaat vs. Koc Holding AS | ENKA Insaat vs. Haci Omer Sabanci |
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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