Correlation Between Aksa Enerji and Qnb Finansbank
Can any of the company-specific risk be diversified away by investing in both Aksa Enerji and Qnb Finansbank 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 Aksa Enerji and Qnb Finansbank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aksa Enerji Uretim and Qnb Finansbank AS, you can compare the effects of market volatilities on Aksa Enerji and Qnb Finansbank 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 Aksa Enerji with a short position of Qnb Finansbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aksa Enerji and Qnb Finansbank.
Diversification Opportunities for Aksa Enerji and Qnb Finansbank
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aksa and Qnb is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Aksa Enerji Uretim and Qnb Finansbank AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qnb Finansbank AS and Aksa Enerji 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 Aksa Enerji Uretim are associated (or correlated) with Qnb Finansbank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qnb Finansbank AS has no effect on the direction of Aksa Enerji i.e., Aksa Enerji and Qnb Finansbank go up and down completely randomly.
Pair Corralation between Aksa Enerji and Qnb Finansbank
Assuming the 90 days trading horizon Aksa Enerji Uretim is expected to generate 0.65 times more return on investment than Qnb Finansbank. However, Aksa Enerji Uretim is 1.54 times less risky than Qnb Finansbank. It trades about 0.1 of its potential returns per unit of risk. Qnb Finansbank AS is currently generating about 0.02 per unit of risk. If you would invest 3,950 in Aksa Enerji Uretim on November 2, 2024 and sell it today you would earn a total of 140.00 from holding Aksa Enerji Uretim or generate 3.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aksa Enerji Uretim vs. Qnb Finansbank AS
Performance |
| Timeline |
| Aksa Enerji Uretim |
| Qnb Finansbank AS |
Aksa Enerji and Qnb Finansbank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aksa Enerji and Qnb Finansbank
The main advantage of trading using opposite Aksa Enerji and Qnb Finansbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aksa Enerji position performs unexpectedly, Qnb Finansbank 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 Finansbank will offset losses from the drop in Qnb Finansbank's long position.| Aksa Enerji vs. Aksa Akrilik Kimya | Aksa Enerji vs. Turkiye Sise ve | Aksa Enerji vs. Hektas Ticaret TAS | Aksa Enerji vs. SASA Polyester Sanayi |
| Qnb Finansbank vs. SASA Polyester Sanayi | Qnb Finansbank vs. Turkish Airlines | Qnb Finansbank vs. Koc Holding AS | Qnb Finansbank vs. Ford Otomotiv Sanayi |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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