Correlation Between ENKA Insaat and Turkiye Petrol
Can any of the company-specific risk be diversified away by investing in both ENKA Insaat and Turkiye Petrol 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 Petrol 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 Petrol Rafinerileri, you can compare the effects of market volatilities on ENKA Insaat and Turkiye Petrol 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 Petrol. Check out your portfolio center. Please also check ongoing floating volatility patterns of ENKA Insaat and Turkiye Petrol.
Diversification Opportunities for ENKA Insaat and Turkiye Petrol
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ENKA and Turkiye is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding ENKA Insaat ve and Turkiye Petrol Rafinerileri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkiye Petrol Rafin 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 Petrol. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turkiye Petrol Rafin has no effect on the direction of ENKA Insaat i.e., ENKA Insaat and Turkiye Petrol go up and down completely randomly.
Pair Corralation between ENKA Insaat and Turkiye Petrol
Assuming the 90 days trading horizon ENKA Insaat ve is expected to generate 1.73 times more return on investment than Turkiye Petrol. However, ENKA Insaat is 1.73 times more volatile than Turkiye Petrol Rafinerileri. It trades about -0.07 of its potential returns per unit of risk. Turkiye Petrol Rafinerileri is currently generating about -0.35 per unit of risk. If you would invest 5,010 in ENKA Insaat ve on November 28, 2024 and sell it today you would lose (218.00) from holding ENKA Insaat ve or give up 4.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
ENKA Insaat ve vs. Turkiye Petrol Rafinerileri
Performance |
| Timeline |
| ENKA Insaat ve |
| Turkiye Petrol Rafin |
ENKA Insaat and Turkiye Petrol Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ENKA Insaat and Turkiye Petrol
The main advantage of trading using opposite ENKA Insaat and Turkiye Petrol positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ENKA Insaat position performs unexpectedly, Turkiye Petrol 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 Petrol will offset losses from the drop in Turkiye Petrol'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 Petrol vs. Eregli Demir ve | Turkiye Petrol vs. Turkiye Sise ve | Turkiye Petrol vs. Turkish Airlines | Turkiye Petrol 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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