Correlation Between ENKA Insaat and Turkiye Kalkinma
Can any of the company-specific risk be diversified away by investing in both ENKA Insaat and Turkiye Kalkinma 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 Turkiye Kalkinma 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 Turkiye Kalkinma Bankasi, you can compare the effects of market volatilities on ENKA Insaat and Turkiye Kalkinma 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 Turkiye Kalkinma. Check out your portfolio center. Please also check ongoing floating volatility patterns of ENKA Insaat and Turkiye Kalkinma.
Diversification Opportunities for ENKA Insaat and Turkiye Kalkinma
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between ENKA and Turkiye is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding ENKA Insaat ve and Turkiye Kalkinma Bankasi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkiye Kalkinma Bankasi 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 Turkiye Kalkinma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turkiye Kalkinma Bankasi has no effect on the direction of ENKA Insaat i.e., ENKA Insaat and Turkiye Kalkinma go up and down completely randomly.
Pair Corralation between ENKA Insaat and Turkiye Kalkinma
Assuming the 90 days trading horizon ENKA Insaat ve is expected to under-perform the Turkiye Kalkinma. In addition to that, ENKA Insaat is 1.34 times more volatile than Turkiye Kalkinma Bankasi. It trades about -0.05 of its total potential returns per unit of risk. Turkiye Kalkinma Bankasi is currently generating about 0.0 per unit of volatility. If you would invest 1,471 in Turkiye Kalkinma Bankasi on September 13, 2024 and sell it today you would lose (6.00) from holding Turkiye Kalkinma Bankasi or give up 0.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ENKA Insaat ve vs. Turkiye Kalkinma Bankasi
Performance |
| Timeline |
| ENKA Insaat ve |
| Turkiye Kalkinma Bankasi |
ENKA Insaat and Turkiye Kalkinma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ENKA Insaat and Turkiye Kalkinma
The main advantage of trading using opposite ENKA Insaat and Turkiye Kalkinma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ENKA Insaat position performs unexpectedly, Turkiye Kalkinma 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 Turkiye Kalkinma will offset losses from the drop in Turkiye Kalkinma'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 |
| Turkiye Kalkinma vs. Turkiye Vakiflar Bankasi | Turkiye Kalkinma vs. Turkiye Halk Bankasi | Turkiye Kalkinma vs. Turkiye Sinai Kalkinma | Turkiye Kalkinma vs. ENKA Insaat 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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