Correlation Between ENKA Insaat and SASA Polyester

Can any of the company-specific risk be diversified away by investing in both ENKA Insaat and SASA Polyester 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 ENKA Insaat and SASA Polyester into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ENKA Insaat ve and SASA Polyester Sanayi, you can compare the effects of market volatilities on ENKA Insaat and SASA Polyester 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 ENKA Insaat with a short position of SASA Polyester. Check out your portfolio center. Please also check ongoing floating volatility patterns of ENKA Insaat and SASA Polyester.

Diversification Opportunities for ENKA Insaat and SASA Polyester

-0.04

Correlation Coefficient

ENKA Insaat  SASA Polyester

Good diversification

The 3 months correlation between ENKA and SASA is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding ENKA Insaat ve and SASA Polyester Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SASA Polyester Sanayi and ENKA Insaat 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 ENKA Insaat ve are associated (or correlated) with SASA Polyester. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SASA Polyester Sanayi has no effect on the direction of ENKA Insaat i.e., ENKA Insaat and SASA Polyester go up and down completely randomly.

Pair Corralation between ENKA Insaat and SASA Polyester

Assuming the 90 days trading horizon ENKA Insaat ve is expected to generate 1.11 times more return on investment than SASA Polyester. However, ENKA Insaat is 1.11 times more volatile than SASA Polyester Sanayi. It trades about 0.03 of its potential returns per unit of risk. SASA Polyester Sanayi is currently generating about -0.11 per unit of risk. If you would invest  5,075  in ENKA Insaat ve on September 4, 2024 and sell it today you would earn a total of  185.00  from holding ENKA Insaat ve or generate 3.65% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

ENKA Insaat ve  vs.  SASA Polyester Sanayi

ENKA Insaat ve

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in ENKA Insaat ve are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward indicators, ENKA Insaat is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

SASA Polyester Sanayi

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SASA Polyester Sanayi has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with ENKA Insaat and SASA Polyester

The main advantage of trading using opposite ENKA Insaat and SASA Polyester positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ENKA Insaat position performs unexpectedly, SASA Polyester 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 SASA Polyester will offset losses from the drop in SASA Polyester's long position.

The idea behind ENKA Insaat ve and SASA Polyester Sanayi pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.