Correlation Between E Data and Can2 Termik

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

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

Diversification Opportunities for E Data and Can2 Termik

0.04

Correlation Coefficient

E Data  Can2 Termik

Significant diversification

The 3 months correlation between EDATA and Can2 is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding E Data Teknoloji Pazarlama and Can2 Termik AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Can2 Termik AS and E Data 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 E Data Teknoloji Pazarlama are associated (or correlated) with Can2 Termik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Can2 Termik AS has no effect on the direction of E Data i.e., E Data and Can2 Termik go up and down completely randomly.

Pair Corralation between E Data and Can2 Termik

Assuming the 90 days trading horizon E Data Teknoloji Pazarlama is expected to under-perform the Can2 Termik. In addition to that, E Data is 1.34 times more volatile than Can2 Termik AS. It trades about -0.11 of its total potential returns per unit of risk. Can2 Termik AS is currently generating about -0.1 per unit of volatility. If you would invest  272.00  in Can2 Termik AS on October 9, 2024 and sell it today you would lose (92.00) from holding Can2 Termik AS or give up 33.82% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

E Data Teknoloji Pazarlama  vs.  Can2 Termik AS

E Data Teknoloji

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days E Data Teknoloji Pazarlama has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, E Data is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Can2 Termik AS

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Can2 Termik AS are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Can2 Termik demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with E Data and Can2 Termik

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

The idea behind E Data Teknoloji Pazarlama and Can2 Termik AS 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.

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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.