Correlation Between Turkiye Petrol and ENKA Insaat
Can any of the company-specific risk be diversified away by investing in both Turkiye Petrol 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 Petrol 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 Petrol Rafinerileri and ENKA Insaat ve, you can compare the effects of market volatilities on Turkiye Petrol 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 Petrol with a short position of ENKA Insaat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Petrol and ENKA Insaat.
Diversification Opportunities for Turkiye Petrol and ENKA Insaat
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Turkiye and ENKA is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Petrol Rafinerileri 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 Petrol 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 Petrol Rafinerileri 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 Petrol i.e., Turkiye Petrol and ENKA Insaat go up and down completely randomly.
Pair Corralation between Turkiye Petrol and ENKA Insaat
Assuming the 90 days trading horizon Turkiye Petrol Rafinerileri is expected to under-perform the ENKA Insaat. But the stock apears to be less risky and, when comparing its historical volatility, Turkiye Petrol Rafinerileri is 1.27 times less risky than ENKA Insaat. The stock trades about -0.11 of its potential returns per unit of risk. The ENKA Insaat ve is currently generating about -0.04 of returns per unit of risk over similar time horizon. 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 | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Turkiye Petrol Rafinerileri vs. ENKA Insaat ve
Performance |
| Timeline |
| Turkiye Petrol Rafin |
| ENKA Insaat ve |
Turkiye Petrol and ENKA Insaat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Petrol and ENKA Insaat
The main advantage of trading using opposite Turkiye Petrol and ENKA Insaat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Petrol 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 Petrol vs. Eregli Demir ve | Turkiye Petrol vs. Turkiye Sise ve | Turkiye Petrol vs. Turkish Airlines | Turkiye Petrol vs. Petkim Petrokimya Holding |
| 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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