Correlation Between BIST Electricity and ENKA Insaat
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By analyzing existing cross correlation between BIST Electricity and ENKA Insaat ve, you can compare the effects of market volatilities on BIST Electricity 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 BIST Electricity with a short position of ENKA Insaat. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIST Electricity and ENKA Insaat.
Diversification Opportunities for BIST Electricity and ENKA Insaat
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BIST and ENKA is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding BIST Electricity 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 BIST Electricity 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 BIST Electricity 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 BIST Electricity i.e., BIST Electricity and ENKA Insaat go up and down completely randomly.
Pair Corralation between BIST Electricity and ENKA Insaat
Assuming the 90 days trading horizon BIST Electricity is expected to generate 2.34 times less return on investment than ENKA Insaat. But when comparing it to its historical volatility, BIST Electricity is 1.22 times less risky than ENKA Insaat. It trades about 0.03 of its potential returns per unit of risk. ENKA Insaat ve is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 3,229 in ENKA Insaat ve on August 31, 2024 and sell it today you would earn a total of 1,936 from holding ENKA Insaat ve or generate 59.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BIST Electricity vs. ENKA Insaat ve
Performance |
| Timeline |
BIST Electricity and ENKA Insaat Volatility Contrast
Predicted Return Density |
| Returns |
BIST Electricity
Pair trading matchups for BIST Electricity
ENKA Insaat ve
Pair trading matchups for ENKA Insaat
Pair Trading with BIST Electricity and ENKA Insaat
The main advantage of trading using opposite BIST Electricity and ENKA Insaat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIST Electricity 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.| BIST Electricity vs. Datagate Bilgisayar Malzemeleri | BIST Electricity vs. Qnb Finansbank AS | BIST Electricity vs. Akbank TAS | BIST Electricity vs. Bms Birlesik Metal |
| ENKA Insaat vs. Aselsan Elektronik Sanayi | ENKA Insaat vs. Turkiye Petrol Rafinerileri | ENKA Insaat vs. Turkiye Sise ve | ENKA Insaat vs. Eregli Demir ve |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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