Correlation Between Can2 Termik and Ege Gubre

Can any of the company-specific risk be diversified away by investing in both Can2 Termik and Ege Gubre 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 Can2 Termik and Ege Gubre into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Can2 Termik AS and Ege Gubre Sanayi, you can compare the effects of market volatilities on Can2 Termik and Ege Gubre 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 Can2 Termik with a short position of Ege Gubre. Check out your portfolio center. Please also check ongoing floating volatility patterns of Can2 Termik and Ege Gubre.

Diversification Opportunities for Can2 Termik and Ege Gubre

0.34

Correlation Coefficient

Can2 Termik  Ege Gubre

Weak diversification

The 3 months correlation between Can2 and Ege is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Can2 Termik AS and Ege Gubre Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ege Gubre Sanayi and Can2 Termik 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 Can2 Termik AS are associated (or correlated) with Ege Gubre. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ege Gubre Sanayi has no effect on the direction of Can2 Termik i.e., Can2 Termik and Ege Gubre go up and down completely randomly.

Pair Corralation between Can2 Termik and Ege Gubre

Assuming the 90 days trading horizon Can2 Termik AS is expected to generate 1.16 times more return on investment than Ege Gubre. However, Can2 Termik is 1.16 times more volatile than Ege Gubre Sanayi. It trades about 0.04 of its potential returns per unit of risk. Ege Gubre Sanayi is currently generating about -0.05 per unit of risk. If you would invest  1,791  in Can2 Termik AS on January 26, 2024 and sell it today you would earn a total of  81.00  from holding Can2 Termik AS or generate 4.52% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.36%
Values	Daily Returns

Can2 Termik AS  vs.  Ege Gubre Sanayi

Can2 Termik AS

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Can2 Termik AS are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent technical and fundamental indicators, Can2 Termik may actually be approaching a critical reversion point that can send shares even higher in May 2024.

Ege Gubre Sanayi

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ege Gubre Sanayi has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's fundamental drivers remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with Can2 Termik and Ege Gubre

The main advantage of trading using opposite Can2 Termik and Ege Gubre positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Can2 Termik position performs unexpectedly, Ege Gubre 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 Ege Gubre will offset losses from the drop in Ege Gubre's long position.

The idea behind Can2 Termik AS and Ege Gubre 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.