Correlation Between Akbank TAS and QNB Finans
Can any of the company-specific risk be diversified away by investing in both Akbank TAS and QNB Finans 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 Akbank TAS and QNB Finans into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akbank TAS and QNB Finans Finansal, you can compare the effects of market volatilities on Akbank TAS and QNB Finans 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 Akbank TAS with a short position of QNB Finans. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akbank TAS and QNB Finans.
Diversification Opportunities for Akbank TAS and QNB Finans
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Akbank and QNB is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Akbank TAS and QNB Finans Finansal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QNB Finans Finansal and Akbank 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 Akbank TAS are associated (or correlated) with QNB Finans. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QNB Finans Finansal has no effect on the direction of Akbank TAS i.e., Akbank TAS and QNB Finans go up and down completely randomly.
Pair Corralation between Akbank TAS and QNB Finans
Assuming the 90 days trading horizon Akbank TAS is expected to generate 1.1 times more return on investment than QNB Finans. However, Akbank TAS is 1.1 times more volatile than QNB Finans Finansal. It trades about 0.44 of its potential returns per unit of risk. QNB Finans Finansal is currently generating about -0.06 per unit of risk. If you would invest 4,696 in Akbank TAS on September 3, 2024 and sell it today you would earn a total of 1,389 from holding Akbank TAS or generate 29.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Akbank TAS vs. QNB Finans Finansal
Performance |
| Timeline |
| Akbank TAS |
| QNB Finans Finansal |
Akbank TAS and QNB Finans Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akbank TAS and QNB Finans
The main advantage of trading using opposite Akbank TAS and QNB Finans positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akbank TAS position performs unexpectedly, QNB Finans 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 QNB Finans will offset losses from the drop in QNB Finans' long position.| Akbank TAS vs. Turkiye Garanti Bankasi | Akbank TAS vs. Yapi ve Kredi | Akbank TAS vs. Turkiye Is Bankasi | Akbank TAS vs. Koc Holding AS |
| QNB Finans vs. Akbank TAS | QNB Finans vs. Turkish Airlines | QNB Finans vs. Gentas Genel Metal | QNB Finans vs. Borlease Otomotiv AS |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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