Correlation Between Aselsan Elektronik and QNB Finans
Can any of the company-specific risk be diversified away by investing in both Aselsan Elektronik 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 Aselsan Elektronik and QNB Finans into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aselsan Elektronik Sanayi and QNB Finans Finansal, you can compare the effects of market volatilities on Aselsan Elektronik 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 Aselsan Elektronik with a short position of QNB Finans. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aselsan Elektronik and QNB Finans.
Diversification Opportunities for Aselsan Elektronik and QNB Finans
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aselsan and QNB is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Aselsan Elektronik Sanayi 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 Aselsan Elektronik 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 Aselsan Elektronik Sanayi 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 Aselsan Elektronik i.e., Aselsan Elektronik and QNB Finans go up and down completely randomly.
Pair Corralation between Aselsan Elektronik and QNB Finans
Assuming the 90 days trading horizon Aselsan Elektronik Sanayi is expected to generate 0.7 times more return on investment than QNB Finans. However, Aselsan Elektronik Sanayi is 1.44 times less risky than QNB Finans. It trades about 0.29 of its potential returns per unit of risk. QNB Finans Finansal is currently generating about -0.08 per unit of risk. If you would invest 6,010 in Aselsan Elektronik Sanayi on August 28, 2024 and sell it today you would earn a total of 745.00 from holding Aselsan Elektronik Sanayi or generate 12.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aselsan Elektronik Sanayi vs. QNB Finans Finansal
Performance |
| Timeline |
| Aselsan Elektronik Sanayi |
| QNB Finans Finansal |
Aselsan Elektronik and QNB Finans Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aselsan Elektronik and QNB Finans
The main advantage of trading using opposite Aselsan Elektronik and QNB Finans positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aselsan Elektronik 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.| Aselsan Elektronik vs. Turkish Airlines | Aselsan Elektronik vs. Turkiye Petrol Rafinerileri | Aselsan Elektronik vs. Petkim Petrokimya Holding | Aselsan Elektronik vs. Eregli Demir ve |
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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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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