Correlation Between Galatasaray Sportif and Qnb Finansbank
Can any of the company-specific risk be diversified away by investing in both Galatasaray Sportif 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 Galatasaray Sportif and Qnb Finansbank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Galatasaray Sportif Sinai and Qnb Finansbank AS, you can compare the effects of market volatilities on Galatasaray Sportif 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 Galatasaray Sportif with a short position of Qnb Finansbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galatasaray Sportif and Qnb Finansbank.
Diversification Opportunities for Galatasaray Sportif and Qnb Finansbank
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Galatasaray and Qnb is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Galatasaray Sportif Sinai 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 Galatasaray Sportif 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 Galatasaray Sportif Sinai 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 Galatasaray Sportif i.e., Galatasaray Sportif and Qnb Finansbank go up and down completely randomly.
Pair Corralation between Galatasaray Sportif and Qnb Finansbank
Assuming the 90 days trading horizon Galatasaray Sportif is expected to generate 1.91 times less return on investment than Qnb Finansbank. In addition to that, Galatasaray Sportif is 1.04 times more volatile than Qnb Finansbank AS. It trades about 0.04 of its total potential returns per unit of risk. Qnb Finansbank AS is currently generating about 0.09 per unit of volatility. If you would invest 5,715 in Qnb Finansbank AS on August 31, 2024 and sell it today you would earn a total of 21,585 from holding Qnb Finansbank AS or generate 377.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Galatasaray Sportif Sinai vs. Qnb Finansbank AS
Performance |
| Timeline |
| Galatasaray Sportif Sinai |
| Qnb Finansbank AS |
Galatasaray Sportif and Qnb Finansbank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galatasaray Sportif and Qnb Finansbank
The main advantage of trading using opposite Galatasaray Sportif and Qnb Finansbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galatasaray Sportif 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.| Galatasaray Sportif vs. ICBC Turkey Bank | Galatasaray Sportif vs. Qnb Finansbank AS | Galatasaray Sportif vs. E Data Teknoloji Pazarlama | Galatasaray Sportif vs. Sodas Sodyum Sanayi |
| 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.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |