Correlation Between ENKA Insaat and Galatasaray Sportif
Can any of the company-specific risk be diversified away by investing in both ENKA Insaat and Galatasaray Sportif 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 Galatasaray Sportif 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 Galatasaray Sportif Sinai, you can compare the effects of market volatilities on ENKA Insaat and Galatasaray Sportif 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 Galatasaray Sportif. Check out your portfolio center. Please also check ongoing floating volatility patterns of ENKA Insaat and Galatasaray Sportif.
Diversification Opportunities for ENKA Insaat and Galatasaray Sportif
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ENKA and Galatasaray is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding ENKA Insaat ve and Galatasaray Sportif Sinai in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Galatasaray Sportif Sinai 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 Galatasaray Sportif. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Galatasaray Sportif Sinai has no effect on the direction of ENKA Insaat i.e., ENKA Insaat and Galatasaray Sportif go up and down completely randomly.
Pair Corralation between ENKA Insaat and Galatasaray Sportif
Assuming the 90 days trading horizon ENKA Insaat ve is expected to generate 1.0 times more return on investment than Galatasaray Sportif. However, ENKA Insaat is 1.0 times more volatile than Galatasaray Sportif Sinai. It trades about 0.09 of its potential returns per unit of risk. Galatasaray Sportif Sinai is currently generating about -0.05 per unit of risk. If you would invest 4,126 in ENKA Insaat ve on September 3, 2024 and sell it today you would earn a total of 1,119 from holding ENKA Insaat ve or generate 27.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ENKA Insaat ve vs. Galatasaray Sportif Sinai
Performance |
| Timeline |
| ENKA Insaat ve |
| Galatasaray Sportif Sinai |
ENKA Insaat and Galatasaray Sportif Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ENKA Insaat and Galatasaray Sportif
The main advantage of trading using opposite ENKA Insaat and Galatasaray Sportif positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ENKA Insaat position performs unexpectedly, Galatasaray Sportif 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 Galatasaray Sportif will offset losses from the drop in Galatasaray Sportif's 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 |
| Galatasaray Sportif vs. Koc Holding AS | Galatasaray Sportif vs. ENKA Insaat ve | Galatasaray Sportif vs. Arcelik AS | Galatasaray Sportif 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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