Correlation Between Sekerbank TAS and Can2 Termik

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

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

Diversification Opportunities for Sekerbank TAS and Can2 Termik

0.79

Correlation Coefficient

Sekerbank TAS  Can2 Termik

Poor diversification

The 3 months correlation between Sekerbank and Can2 is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Sekerbank TAS 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 Sekerbank TAS 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 Sekerbank TAS 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 Sekerbank TAS i.e., Sekerbank TAS and Can2 Termik go up and down completely randomly.

Pair Corralation between Sekerbank TAS and Can2 Termik

Assuming the 90 days trading horizon Sekerbank TAS is expected to generate 1.17 times more return on investment than Can2 Termik. However, Sekerbank TAS is 1.17 times more volatile than Can2 Termik AS. It trades about 0.18 of its potential returns per unit of risk. Can2 Termik AS is currently generating about 0.12 per unit of risk. If you would invest  392.00  in Sekerbank TAS on October 8, 2024 and sell it today you would earn a total of  101.00  from holding Sekerbank TAS or generate 25.77% return on investment over 90 days.

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

Sekerbank TAS  vs.  Can2 Termik AS

Sekerbank TAS

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Sekerbank TAS are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak forward indicators, Sekerbank TAS demonstrated solid returns over the last few months and may actually be approaching a breakup point.

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 Sekerbank TAS and Can2 Termik

The main advantage of trading using opposite Sekerbank TAS and Can2 Termik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sekerbank TAS 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 Sekerbank TAS 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.