Correlation Between Garanti Faktoring and QNB Finans
Can any of the company-specific risk be diversified away by investing in both Garanti Faktoring 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 Garanti Faktoring and QNB Finans into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Garanti Faktoring AS and QNB Finans Finansal, you can compare the effects of market volatilities on Garanti Faktoring 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 Garanti Faktoring with a short position of QNB Finans. Check out your portfolio center. Please also check ongoing floating volatility patterns of Garanti Faktoring and QNB Finans.
Diversification Opportunities for Garanti Faktoring and QNB Finans
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Garanti and QNB is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Garanti Faktoring AS 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 Garanti Faktoring 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 Garanti Faktoring AS 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 Garanti Faktoring i.e., Garanti Faktoring and QNB Finans go up and down completely randomly.
Pair Corralation between Garanti Faktoring and QNB Finans
Assuming the 90 days trading horizon Garanti Faktoring AS is expected to generate 0.58 times more return on investment than QNB Finans. However, Garanti Faktoring AS is 1.73 times less risky than QNB Finans. It trades about 0.14 of its potential returns per unit of risk. QNB Finans Finansal is currently generating about -0.06 per unit of risk. If you would invest 1,879 in Garanti Faktoring AS on August 25, 2024 and sell it today you would earn a total of 90.00 from holding Garanti Faktoring AS or generate 4.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Garanti Faktoring AS vs. QNB Finans Finansal
Performance |
| Timeline |
| Garanti Faktoring |
| QNB Finans Finansal |
Garanti Faktoring and QNB Finans Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Garanti Faktoring and QNB Finans
The main advantage of trading using opposite Garanti Faktoring and QNB Finans positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Garanti Faktoring 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.| Garanti Faktoring vs. Turkiye Is Bankasi | Garanti Faktoring vs. Turkiye Is Bankasi | Garanti Faktoring vs. Haci Omer Sabanci | Garanti Faktoring vs. Turkiye Garanti Bankasi |
| QNB Finans vs. Is Finansal Kiralama | QNB Finans vs. Garanti Faktoring AS | QNB Finans vs. Lider Faktoring AS | QNB Finans vs. Seker Finansal Kiralama |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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