Correlation Between Cemtas Celik and Qnb Finansbank
Can any of the company-specific risk be diversified away by investing in both Cemtas Celik 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 Cemtas Celik and Qnb Finansbank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cemtas Celik Makina and Qnb Finansbank AS, you can compare the effects of market volatilities on Cemtas Celik 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 Cemtas Celik with a short position of Qnb Finansbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cemtas Celik and Qnb Finansbank.
Diversification Opportunities for Cemtas Celik and Qnb Finansbank
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cemtas and Qnb is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Cemtas Celik Makina 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 Cemtas Celik 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 Cemtas Celik Makina 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 Cemtas Celik i.e., Cemtas Celik and Qnb Finansbank go up and down completely randomly.
Pair Corralation between Cemtas Celik and Qnb Finansbank
Assuming the 90 days trading horizon Cemtas Celik Makina is expected to generate 1.07 times more return on investment than Qnb Finansbank. However, Cemtas Celik is 1.07 times more volatile than Qnb Finansbank AS. It trades about 0.33 of its potential returns per unit of risk. Qnb Finansbank AS is currently generating about -0.11 per unit of risk. If you would invest 810.00 in Cemtas Celik Makina on September 3, 2024 and sell it today you would earn a total of 75.00 from holding Cemtas Celik Makina or generate 9.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.24% |
| Values | Daily Returns |
Cemtas Celik Makina vs. Qnb Finansbank AS
Performance |
| Timeline |
| Cemtas Celik Makina |
| Qnb Finansbank AS |
Cemtas Celik and Qnb Finansbank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cemtas Celik and Qnb Finansbank
The main advantage of trading using opposite Cemtas Celik and Qnb Finansbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cemtas Celik 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.| Cemtas Celik vs. Qnb Finansbank AS | Cemtas Celik vs. Turkiye Kalkinma Bankasi | Cemtas Celik vs. Kocaer Celik Sanayi | Cemtas Celik vs. Cimentas Izmir Cimento |
| Qnb Finansbank vs. Turkiye Halk Bankasi | Qnb Finansbank vs. Turkiye Vakiflar Bankasi | Qnb Finansbank vs. Turkiye Garanti Bankasi | Qnb Finansbank vs. Yapi ve Kredi |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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