Correlation Between ENKA Insaat and Ege Endustri
Can any of the company-specific risk be diversified away by investing in both ENKA Insaat and Ege Endustri 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 Ege Endustri 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 Ege Endustri ve, you can compare the effects of market volatilities on ENKA Insaat and Ege Endustri 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 Ege Endustri. Check out your portfolio center. Please also check ongoing floating volatility patterns of ENKA Insaat and Ege Endustri.
Diversification Opportunities for ENKA Insaat and Ege Endustri
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ENKA and Ege is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding ENKA Insaat ve and Ege Endustri ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ege Endustri ve 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 Ege Endustri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ege Endustri ve has no effect on the direction of ENKA Insaat i.e., ENKA Insaat and Ege Endustri go up and down completely randomly.
Pair Corralation between ENKA Insaat and Ege Endustri
Assuming the 90 days trading horizon ENKA Insaat is expected to generate 1.12 times less return on investment than Ege Endustri. But when comparing it to its historical volatility, ENKA Insaat ve is 1.3 times less risky than Ege Endustri. It trades about 0.07 of its potential returns per unit of risk. Ege Endustri ve is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 528,849 in Ege Endustri ve on September 12, 2024 and sell it today you would earn a total of 533,151 from holding Ege Endustri ve or generate 100.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.19% |
| Values | Daily Returns |
ENKA Insaat ve vs. Ege Endustri ve
Performance |
| Timeline |
| ENKA Insaat ve |
| Ege Endustri ve |
ENKA Insaat and Ege Endustri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ENKA Insaat and Ege Endustri
The main advantage of trading using opposite ENKA Insaat and Ege Endustri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ENKA Insaat position performs unexpectedly, Ege Endustri 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 Ege Endustri will offset losses from the drop in Ege Endustri's long position.| ENKA Insaat vs. Ege Endustri ve | ENKA Insaat vs. Turkiye Petrol Rafinerileri | ENKA Insaat vs. Turkiye Garanti Bankasi | ENKA Insaat vs. Turkish Airlines |
| Ege Endustri vs. Ford Otomotiv Sanayi | Ege Endustri vs. Tofas Turk Otomobil | Ege Endustri vs. Hektas Ticaret TAS | Ege Endustri vs. Eregli Demir ve |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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