Correlation Between Ford Otomotiv and Qnb Finansbank
Can any of the company-specific risk be diversified away by investing in both Ford 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 Ford 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 Ford Otomotiv Sanayi and Qnb Finansbank AS, you can compare the effects of market volatilities on Ford 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 Ford Otomotiv with a short position of Qnb Finansbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford Otomotiv and Qnb Finansbank.
Diversification Opportunities for Ford Otomotiv and Qnb Finansbank
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ford and Qnb is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Ford Otomotiv Sanayi 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 Ford 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 Ford Otomotiv Sanayi 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 Ford Otomotiv i.e., Ford Otomotiv and Qnb Finansbank go up and down completely randomly.
Pair Corralation between Ford Otomotiv and Qnb Finansbank
Assuming the 90 days trading horizon Ford Otomotiv Sanayi is expected to generate 1.79 times more return on investment than Qnb Finansbank. However, Ford Otomotiv is 1.79 times more volatile than Qnb Finansbank AS. It trades about 0.02 of its potential returns per unit of risk. Qnb Finansbank AS is currently generating about -0.06 per unit of risk. If you would invest 96,824 in Ford Otomotiv Sanayi on August 30, 2024 and sell it today you would earn a total of 476.00 from holding Ford Otomotiv Sanayi or generate 0.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Ford Otomotiv Sanayi vs. Qnb Finansbank AS
Performance |
| Timeline |
| Ford Otomotiv Sanayi |
| Qnb Finansbank AS |
Ford Otomotiv and Qnb Finansbank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford Otomotiv and Qnb Finansbank
The main advantage of trading using opposite Ford Otomotiv and Qnb Finansbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford 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.| Ford Otomotiv vs. Eregli Demir ve | Ford Otomotiv vs. Tofas Turk Otomobil | Ford Otomotiv vs. Turkiye Petrol Rafinerileri | Ford Otomotiv vs. Turkiye Sise ve |
| 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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