Correlation Between ENKA Insaat and Yapi Ve
Can any of the company-specific risk be diversified away by investing in both ENKA Insaat and Yapi Ve 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 Yapi Ve 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 Yapi ve Kredi, you can compare the effects of market volatilities on ENKA Insaat and Yapi Ve 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 Yapi Ve. Check out your portfolio center. Please also check ongoing floating volatility patterns of ENKA Insaat and Yapi Ve.
Diversification Opportunities for ENKA Insaat and Yapi Ve
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between ENKA and Yapi is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding ENKA Insaat ve and Yapi ve Kredi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yapi ve Kredi 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 Yapi Ve. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yapi ve Kredi has no effect on the direction of ENKA Insaat i.e., ENKA Insaat and Yapi Ve go up and down completely randomly.
Pair Corralation between ENKA Insaat and Yapi Ve
Assuming the 90 days trading horizon ENKA Insaat is expected to generate 2.64 times less return on investment than Yapi Ve. In addition to that, ENKA Insaat is 1.01 times more volatile than Yapi ve Kredi. It trades about 0.12 of its total potential returns per unit of risk. Yapi ve Kredi is currently generating about 0.33 per unit of volatility. If you would invest 2,406 in Yapi ve Kredi on September 2, 2024 and sell it today you would earn a total of 558.00 from holding Yapi ve Kredi or generate 23.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ENKA Insaat ve vs. Yapi ve Kredi
Performance |
| Timeline |
| ENKA Insaat ve |
| Yapi ve Kredi |
ENKA Insaat and Yapi Ve Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ENKA Insaat and Yapi Ve
The main advantage of trading using opposite ENKA Insaat and Yapi Ve positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ENKA Insaat position performs unexpectedly, Yapi Ve 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 Yapi Ve will offset losses from the drop in Yapi Ve'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 |
| Yapi Ve vs. Akcansa Cimento Sanayi | Yapi Ve vs. Koza Anadolu Metal | Yapi Ve vs. Bms Birlesik Metal | Yapi Ve vs. Cuhadaroglu Metal Sanayi |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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