Correlation Between Hedef Holdings and Qnb Finansbank
Can any of the company-specific risk be diversified away by investing in both Hedef Holdings 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 Hedef Holdings and Qnb Finansbank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hedef Holdings AS and Qnb Finansbank AS, you can compare the effects of market volatilities on Hedef Holdings 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 Hedef Holdings with a short position of Qnb Finansbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hedef Holdings and Qnb Finansbank.
Diversification Opportunities for Hedef Holdings and Qnb Finansbank
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hedef and Qnb is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Hedef Holdings AS 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 Hedef Holdings 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 Hedef Holdings AS 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 Hedef Holdings i.e., Hedef Holdings and Qnb Finansbank go up and down completely randomly.
Pair Corralation between Hedef Holdings and Qnb Finansbank
Assuming the 90 days trading horizon Hedef Holdings AS is expected to generate 0.86 times more return on investment than Qnb Finansbank. However, Hedef Holdings AS is 1.17 times less risky than Qnb Finansbank. It trades about 0.06 of its potential returns per unit of risk. Qnb Finansbank AS is currently generating about -0.01 per unit of risk. If you would invest 303.00 in Hedef Holdings AS on September 13, 2024 and sell it today you would earn a total of 6.00 from holding Hedef Holdings AS or generate 1.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hedef Holdings AS vs. Qnb Finansbank AS
Performance |
| Timeline |
| Hedef Holdings AS |
| Qnb Finansbank AS |
Hedef Holdings and Qnb Finansbank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hedef Holdings and Qnb Finansbank
The main advantage of trading using opposite Hedef Holdings and Qnb Finansbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hedef Holdings 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.| Hedef Holdings vs. Verusa Holding AS | Hedef Holdings vs. GSD Holding AS | Hedef Holdings vs. Guler Yatirim Holding | Hedef Holdings vs. Verusaturk Girisim Sermayesi |
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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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