Correlation Between ENKA Insaat and Ideal Finansal
Can any of the company-specific risk be diversified away by investing in both ENKA Insaat and Ideal Finansal 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 Ideal Finansal 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 Ideal Finansal Teknolojiler, you can compare the effects of market volatilities on ENKA Insaat and Ideal Finansal 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 Ideal Finansal. Check out your portfolio center. Please also check ongoing floating volatility patterns of ENKA Insaat and Ideal Finansal.
Diversification Opportunities for ENKA Insaat and Ideal Finansal
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ENKA and Ideal is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding ENKA Insaat ve and Ideal Finansal Teknolojiler in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ideal Finansal Tekno 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 Ideal Finansal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ideal Finansal Tekno has no effect on the direction of ENKA Insaat i.e., ENKA Insaat and Ideal Finansal go up and down completely randomly.
Pair Corralation between ENKA Insaat and Ideal Finansal
Assuming the 90 days trading horizon ENKA Insaat ve is expected to generate 0.99 times more return on investment than Ideal Finansal. However, ENKA Insaat ve is 1.02 times less risky than Ideal Finansal. It trades about 0.11 of its potential returns per unit of risk. Ideal Finansal Teknolojiler is currently generating about -0.13 per unit of risk. If you would invest 4,822 in ENKA Insaat ve on August 30, 2024 and sell it today you would earn a total of 343.00 from holding ENKA Insaat ve or generate 7.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ENKA Insaat ve vs. Ideal Finansal Teknolojiler
Performance |
| Timeline |
| ENKA Insaat ve |
| Ideal Finansal Tekno |
ENKA Insaat and Ideal Finansal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ENKA Insaat and Ideal Finansal
The main advantage of trading using opposite ENKA Insaat and Ideal Finansal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ENKA Insaat position performs unexpectedly, Ideal Finansal 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 Ideal Finansal will offset losses from the drop in Ideal Finansal'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 |
| Ideal Finansal vs. Politeknik Metal Sanayi | Ideal Finansal vs. MEGA METAL | Ideal Finansal vs. Koza Anadolu Metal | Ideal Finansal vs. Turkish Airlines |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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