Correlation Between ENKA Insaat and Sok Marketler

Can any of the company-specific risk be diversified away by investing in both ENKA Insaat and Sok Marketler 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 Sok Marketler 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 Sok Marketler Ticaret, you can compare the effects of market volatilities on ENKA Insaat and Sok Marketler 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 Sok Marketler. Check out your portfolio center. Please also check ongoing floating volatility patterns of ENKA Insaat and Sok Marketler.

Diversification Opportunities for ENKA Insaat and Sok Marketler

-0.48

Correlation Coefficient

ENKA Insaat  Sok Marketler

Very good diversification

The 3 months correlation between ENKA and Sok is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding ENKA Insaat ve and Sok Marketler Ticaret in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sok Marketler Ticaret 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 Sok Marketler. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sok Marketler Ticaret has no effect on the direction of ENKA Insaat i.e., ENKA Insaat and Sok Marketler go up and down completely randomly.

Pair Corralation between ENKA Insaat and Sok Marketler

Assuming the 90 days trading horizon ENKA Insaat ve is expected to generate 0.99 times more return on investment than Sok Marketler. However, ENKA Insaat ve is 1.01 times less risky than Sok Marketler. It trades about 0.05 of its potential returns per unit of risk. Sok Marketler Ticaret is currently generating about 0.04 per unit of risk. If you would invest  3,190  in ENKA Insaat ve on September 23, 2024 and sell it today you would earn a total of  1,895  from holding ENKA Insaat ve or generate 59.4% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	99.2%
Values	Daily Returns

ENKA Insaat ve  vs.  Sok Marketler Ticaret

ENKA Insaat ve

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in ENKA Insaat ve are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, ENKA Insaat may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Sok Marketler Ticaret

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sok Marketler Ticaret has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest inconsistent performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with ENKA Insaat and Sok Marketler

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

The idea behind ENKA Insaat ve and Sok Marketler Ticaret 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.