Correlation Between Borlease Otomotiv and Qnb Finansbank
Can any of the company-specific risk be diversified away by investing in both Borlease Otomotiv 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 Borlease Otomotiv and Qnb Finansbank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Borlease Otomotiv AS and Qnb Finansbank AS, you can compare the effects of market volatilities on Borlease Otomotiv 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 Borlease Otomotiv with a short position of Qnb Finansbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Borlease Otomotiv and Qnb Finansbank.
Diversification Opportunities for Borlease Otomotiv and Qnb Finansbank
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Borlease and Qnb is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Borlease Otomotiv AS 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 Borlease Otomotiv 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 Borlease Otomotiv AS 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 Borlease Otomotiv i.e., Borlease Otomotiv and Qnb Finansbank go up and down completely randomly.
Pair Corralation between Borlease Otomotiv and Qnb Finansbank
Assuming the 90 days trading horizon Borlease Otomotiv AS is expected to generate 0.95 times more return on investment than Qnb Finansbank. However, Borlease Otomotiv AS is 1.05 times less risky than Qnb Finansbank. It trades about 0.19 of its potential returns per unit of risk. Qnb Finansbank AS is currently generating about -0.03 per unit of risk. If you would invest 3,338 in Borlease Otomotiv AS on September 19, 2024 and sell it today you would earn a total of 2,947 from holding Borlease Otomotiv AS or generate 88.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Borlease Otomotiv AS vs. Qnb Finansbank AS
Performance |
| Timeline |
| Borlease Otomotiv |
| Qnb Finansbank AS |
Borlease Otomotiv and Qnb Finansbank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Borlease Otomotiv and Qnb Finansbank
The main advantage of trading using opposite Borlease Otomotiv and Qnb Finansbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Borlease Otomotiv 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.| Borlease Otomotiv vs. Datagate Bilgisayar Malzemeleri | Borlease Otomotiv vs. Sodas Sodyum Sanayi | Borlease Otomotiv vs. E Data Teknoloji Pazarlama | Borlease Otomotiv vs. Bms Birlesik Metal |
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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 Transaction History module to view history of all your transactions and understand their impact on performance.
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