Correlation Between Koc Holding and Qnb Finansbank
Can any of the company-specific risk be diversified away by investing in both Koc Holding 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 Koc Holding and Qnb Finansbank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Koc Holding AS and Qnb Finansbank AS, you can compare the effects of market volatilities on Koc Holding 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 Koc Holding with a short position of Qnb Finansbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koc Holding and Qnb Finansbank.
Diversification Opportunities for Koc Holding and Qnb Finansbank
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Koc and Qnb is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Koc Holding 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 Koc Holding 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 Koc Holding 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 Koc Holding i.e., Koc Holding and Qnb Finansbank go up and down completely randomly.
Pair Corralation between Koc Holding and Qnb Finansbank
Assuming the 90 days trading horizon Koc Holding AS is expected to under-perform the Qnb Finansbank. But the stock apears to be less risky and, when comparing its historical volatility, Koc Holding AS is 1.81 times less risky than Qnb Finansbank. The stock trades about -0.11 of its potential returns per unit of risk. The Qnb Finansbank AS is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 27,550 in Qnb Finansbank AS on October 20, 2024 and sell it today you would earn a total of 0.00 from holding Qnb Finansbank AS or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Koc Holding AS vs. Qnb Finansbank AS
Performance |
| Timeline |
| Koc Holding AS |
| Qnb Finansbank AS |
Koc Holding and Qnb Finansbank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koc Holding and Qnb Finansbank
The main advantage of trading using opposite Koc Holding and Qnb Finansbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koc Holding 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.| Koc Holding vs. Haci Omer Sabanci | Koc Holding vs. Turkiye Sise ve | Koc Holding vs. Turkiye Petrol Rafinerileri | Koc Holding vs. Turkiye Garanti Bankasi |
| Qnb Finansbank vs. SASA Polyester Sanayi | Qnb Finansbank vs. Turkish Airlines | Qnb Finansbank vs. Koc Holding AS | Qnb Finansbank vs. Ford Otomotiv Sanayi |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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