Correlation Between Gentas Genel and Qnb Finansbank
Can any of the company-specific risk be diversified away by investing in both Gentas Genel 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 Gentas Genel and Qnb Finansbank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gentas Genel Metal and Qnb Finansbank AS, you can compare the effects of market volatilities on Gentas Genel 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 Gentas Genel with a short position of Qnb Finansbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gentas Genel and Qnb Finansbank.
Diversification Opportunities for Gentas Genel and Qnb Finansbank
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Gentas and Qnb is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Gentas Genel Metal 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 Gentas Genel 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 Gentas Genel Metal 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 Gentas Genel i.e., Gentas Genel and Qnb Finansbank go up and down completely randomly.
Pair Corralation between Gentas Genel and Qnb Finansbank
Assuming the 90 days trading horizon Gentas Genel Metal is expected to generate 0.82 times more return on investment than Qnb Finansbank. However, Gentas Genel Metal is 1.22 times less risky than Qnb Finansbank. It trades about 0.07 of its potential returns per unit of risk. Qnb Finansbank AS is currently generating about -0.15 per unit of risk. If you would invest 772.00 in Gentas Genel Metal on August 29, 2024 and sell it today you would earn a total of 73.00 from holding Gentas Genel Metal or generate 9.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
Gentas Genel Metal vs. Qnb Finansbank AS
Performance |
| Timeline |
| Gentas Genel Metal |
| Qnb Finansbank AS |
Gentas Genel and Qnb Finansbank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gentas Genel and Qnb Finansbank
The main advantage of trading using opposite Gentas Genel and Qnb Finansbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gentas Genel 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.| Gentas Genel vs. Haci Omer Sabanci | Gentas Genel vs. Turkiye Sise ve | Gentas Genel vs. Turkiye Petrol Rafinerileri | Gentas Genel vs. Turkiye Garanti Bankasi |
| 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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