Correlation Between Turkiye Is and ENKA Insaat
Can any of the company-specific risk be diversified away by investing in both Turkiye Is and ENKA Insaat 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 Turkiye Is and ENKA Insaat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Turkiye Is Bankasi and ENKA Insaat ve, you can compare the effects of market volatilities on Turkiye Is and ENKA Insaat 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 Turkiye Is with a short position of ENKA Insaat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Is and ENKA Insaat.
Diversification Opportunities for Turkiye Is and ENKA Insaat
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Turkiye and ENKA is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Is Bankasi and ENKA Insaat ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENKA Insaat ve and Turkiye Is 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 Turkiye Is Bankasi are associated (or correlated) with ENKA Insaat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENKA Insaat ve has no effect on the direction of Turkiye Is i.e., Turkiye Is and ENKA Insaat go up and down completely randomly.
Pair Corralation between Turkiye Is and ENKA Insaat
Assuming the 90 days trading horizon Turkiye Is Bankasi is expected to generate 0.82 times more return on investment than ENKA Insaat. However, Turkiye Is Bankasi is 1.22 times less risky than ENKA Insaat. It trades about 0.25 of its potential returns per unit of risk. ENKA Insaat ve is currently generating about 0.12 per unit of risk. If you would invest 1,195 in Turkiye Is Bankasi on September 2, 2024 and sell it today you would earn a total of 168.00 from holding Turkiye Is Bankasi or generate 14.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turkiye Is Bankasi vs. ENKA Insaat ve
Performance |
| Timeline |
| Turkiye Is Bankasi |
| ENKA Insaat ve |
Turkiye Is and ENKA Insaat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Is and ENKA Insaat
The main advantage of trading using opposite Turkiye Is and ENKA Insaat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Is position performs unexpectedly, ENKA Insaat 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 ENKA Insaat will offset losses from the drop in ENKA Insaat's long position.| Turkiye Is vs. Turkiye Garanti Bankasi | Turkiye Is vs. Akbank TAS | Turkiye Is vs. Yapi ve Kredi | Turkiye Is vs. Turkiye Sise ve |
| ENKA Insaat vs. Turkiye Sise ve | ENKA Insaat vs. Eregli Demir ve | ENKA Insaat vs. Koc Holding AS | ENKA Insaat vs. Haci Omer Sabanci |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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