Correlation Between Koc Holding and Can2 Termik

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

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

Diversification Opportunities for Koc Holding and Can2 Termik

0.61

Correlation Coefficient

Koc Holding  Can2 Termik

Poor diversification

The 3 months correlation between Koc and Can2 is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Koc Holding AS 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 Koc Holding 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 Koc Holding AS 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 Koc Holding i.e., Koc Holding and Can2 Termik go up and down completely randomly.

Pair Corralation between Koc Holding and Can2 Termik

Assuming the 90 days trading horizon Koc Holding is expected to generate 2.28 times less return on investment than Can2 Termik. In addition to that, Koc Holding is 1.03 times more volatile than Can2 Termik AS. It trades about 0.05 of its total potential returns per unit of risk. Can2 Termik AS is currently generating about 0.12 per unit of volatility. If you would invest  149.00  in Can2 Termik AS on October 6, 2024 and sell it today you would earn a total of  21.00  from holding Can2 Termik AS or generate 14.09% return on investment over 90 days.

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

Koc Holding AS  vs.  Can2 Termik AS

Koc Holding AS

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Koc Holding AS are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward indicators, Koc Holding 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

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Can2 Termik AS are ranked lower than 9 (%) 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 Koc Holding and Can2 Termik

The main advantage of trading using opposite Koc Holding and Can2 Termik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koc Holding 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 Koc Holding AS 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.

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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.