Correlation Between Sok Marketler and ENKA Insaat
Can any of the company-specific risk be diversified away by investing in both Sok Marketler 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 Sok Marketler and ENKA Insaat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sok Marketler Ticaret and ENKA Insaat ve, you can compare the effects of market volatilities on Sok Marketler 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 Sok Marketler with a short position of ENKA Insaat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sok Marketler and ENKA Insaat.
Diversification Opportunities for Sok Marketler and ENKA Insaat
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sok and ENKA is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Sok Marketler Ticaret 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 Sok Marketler 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 Sok Marketler Ticaret 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 Sok Marketler i.e., Sok Marketler and ENKA Insaat go up and down completely randomly.
Pair Corralation between Sok Marketler and ENKA Insaat
Assuming the 90 days trading horizon Sok Marketler Ticaret is expected to generate 0.77 times more return on investment than ENKA Insaat. However, Sok Marketler Ticaret is 1.29 times less risky than ENKA Insaat. It trades about -0.04 of its potential returns per unit of risk. ENKA Insaat ve is currently generating about -0.08 per unit of risk. If you would invest 3,964 in Sok Marketler Ticaret on October 20, 2024 and sell it today you would lose (54.00) from holding Sok Marketler Ticaret or give up 1.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Sok Marketler Ticaret vs. ENKA Insaat ve
Performance |
| Timeline |
| Sok Marketler Ticaret |
| ENKA Insaat ve |
Sok Marketler and ENKA Insaat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sok Marketler and ENKA Insaat
The main advantage of trading using opposite Sok Marketler and ENKA Insaat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sok Marketler 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.| Sok Marketler vs. Koc Holding AS | Sok Marketler vs. Turkiye Is Bankasi | Sok Marketler vs. Turkiye Is Bankasi | Sok Marketler vs. Turkiye Garanti Bankasi |
| ENKA Insaat vs. BIM Birlesik Magazalar | ENKA Insaat vs. Haci Omer Sabanci | ENKA Insaat vs. AG Anadolu Group | ENKA Insaat vs. Sok Marketler Ticaret |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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