Correlation Between ENKA Insaat and Turk Telekomunikasyon
Can any of the company-specific risk be diversified away by investing in both ENKA Insaat and Turk Telekomunikasyon 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 Turk Telekomunikasyon 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 Turk Telekomunikasyon AS, you can compare the effects of market volatilities on ENKA Insaat and Turk Telekomunikasyon 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 Turk Telekomunikasyon. Check out your portfolio center. Please also check ongoing floating volatility patterns of ENKA Insaat and Turk Telekomunikasyon.
Diversification Opportunities for ENKA Insaat and Turk Telekomunikasyon
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between ENKA and Turk is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding ENKA Insaat ve and Turk Telekomunikasyon AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turk Telekomunikasyon 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 Turk Telekomunikasyon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turk Telekomunikasyon has no effect on the direction of ENKA Insaat i.e., ENKA Insaat and Turk Telekomunikasyon go up and down completely randomly.
Pair Corralation between ENKA Insaat and Turk Telekomunikasyon
Assuming the 90 days trading horizon ENKA Insaat ve is expected to generate 1.3 times more return on investment than Turk Telekomunikasyon. However, ENKA Insaat is 1.3 times more volatile than Turk Telekomunikasyon AS. It trades about 0.11 of its potential returns per unit of risk. Turk Telekomunikasyon AS is currently generating about -0.06 per unit of risk. If you would invest 4,530 in ENKA Insaat ve on August 30, 2024 and sell it today you would earn a total of 590.00 from holding ENKA Insaat ve or generate 13.02% 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. Turk Telekomunikasyon AS
Performance |
| Timeline |
| ENKA Insaat ve |
| Turk Telekomunikasyon |
ENKA Insaat and Turk Telekomunikasyon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ENKA Insaat and Turk Telekomunikasyon
The main advantage of trading using opposite ENKA Insaat and Turk Telekomunikasyon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ENKA Insaat position performs unexpectedly, Turk Telekomunikasyon 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 Turk Telekomunikasyon will offset losses from the drop in Turk Telekomunikasyon'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 |
| Turk Telekomunikasyon vs. Turkcell Iletisim Hizmetleri | Turk Telekomunikasyon vs. Haci Omer Sabanci | Turk Telekomunikasyon vs. Arcelik AS | Turk Telekomunikasyon vs. Petkim Petrokimya Holding |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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