Correlation Between SASA Polyester and ENKA Insaat
Can any of the company-specific risk be diversified away by investing in both SASA Polyester 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 SASA Polyester and ENKA Insaat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SASA Polyester Sanayi and ENKA Insaat ve, you can compare the effects of market volatilities on SASA Polyester 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 SASA Polyester with a short position of ENKA Insaat. Check out your portfolio center. Please also check ongoing floating volatility patterns of SASA Polyester and ENKA Insaat.
Diversification Opportunities for SASA Polyester and ENKA Insaat
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SASA and ENKA is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding SASA Polyester Sanayi 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 SASA Polyester 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 SASA Polyester Sanayi 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 SASA Polyester i.e., SASA Polyester and ENKA Insaat go up and down completely randomly.
Pair Corralation between SASA Polyester and ENKA Insaat
Assuming the 90 days trading horizon SASA Polyester Sanayi is expected to under-perform the ENKA Insaat. In addition to that, SASA Polyester is 1.05 times more volatile than ENKA Insaat ve. It trades about -0.28 of its total potential returns per unit of risk. ENKA Insaat ve is currently generating about -0.04 per unit of volatility. If you would invest 4,984 in ENKA Insaat ve on November 2, 2024 and sell it today you would lose (84.00) from holding ENKA Insaat ve or give up 1.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
SASA Polyester Sanayi vs. ENKA Insaat ve
Performance |
| Timeline |
| SASA Polyester Sanayi |
| ENKA Insaat ve |
SASA Polyester and ENKA Insaat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SASA Polyester and ENKA Insaat
The main advantage of trading using opposite SASA Polyester and ENKA Insaat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SASA Polyester 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.| SASA Polyester vs. Hektas Ticaret TAS | SASA Polyester vs. Eregli Demir ve | SASA Polyester vs. Turkiye Sise ve | SASA Polyester vs. Turkiye Petrol Rafinerileri |
| 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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