Correlation Between Ford Otomotiv and QNB Finans
Can any of the company-specific risk be diversified away by investing in both Ford Otomotiv 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 Ford Otomotiv and QNB Finans 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 Finans Finansal, you can compare the effects of market volatilities on Ford Otomotiv 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 Ford Otomotiv with a short position of QNB Finans. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford Otomotiv and QNB Finans.
Diversification Opportunities for Ford Otomotiv and QNB Finans
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ford and QNB is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Ford Otomotiv 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 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 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 Ford Otomotiv i.e., Ford Otomotiv and QNB Finans go up and down completely randomly.
Pair Corralation between Ford Otomotiv and QNB Finans
Assuming the 90 days trading horizon Ford Otomotiv is expected to generate 9.21 times less return on investment than QNB Finans. But when comparing it to its historical volatility, Ford Otomotiv Sanayi is 2.57 times less risky than QNB Finans. It trades about 0.04 of its potential returns per unit of risk. QNB Finans Finansal is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,358 in QNB Finans Finansal on September 12, 2024 and sell it today you would earn a total of 9,022 from holding QNB Finans Finansal or generate 664.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ford Otomotiv Sanayi vs. QNB Finans Finansal
Performance |
| Timeline |
| Ford Otomotiv Sanayi |
| QNB Finans Finansal |
Ford Otomotiv and QNB Finans Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford Otomotiv and QNB Finans
The main advantage of trading using opposite Ford Otomotiv and QNB Finans positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford Otomotiv 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.| Ford Otomotiv vs. QNB Finans Finansal | Ford Otomotiv vs. Pamel Yenilenebilir Elektrik | Ford Otomotiv vs. IZDEMIR Enerji Elektrik | Ford Otomotiv vs. Logo Yazilim Sanayi |
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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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