Correlation Between Kent Gida and Qnb Finansbank
Can any of the company-specific risk be diversified away by investing in both Kent Gida 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 Kent Gida and Qnb Finansbank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kent Gida Maddeleri and Qnb Finansbank AS, you can compare the effects of market volatilities on Kent Gida 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 Kent Gida with a short position of Qnb Finansbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kent Gida and Qnb Finansbank.
Diversification Opportunities for Kent Gida and Qnb Finansbank
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kent and Qnb is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Kent Gida Maddeleri 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 Kent Gida 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 Kent Gida Maddeleri 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 Kent Gida i.e., Kent Gida and Qnb Finansbank go up and down completely randomly.
Pair Corralation between Kent Gida and Qnb Finansbank
Assuming the 90 days trading horizon Kent Gida Maddeleri is expected to generate 2.56 times more return on investment than Qnb Finansbank. However, Kent Gida is 2.56 times more volatile than Qnb Finansbank AS. It trades about 0.03 of its potential returns per unit of risk. Qnb Finansbank AS is currently generating about -0.13 per unit of risk. If you would invest 80,900 in Kent Gida Maddeleri on August 31, 2024 and sell it today you would earn a total of 750.00 from holding Kent Gida Maddeleri or generate 0.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kent Gida Maddeleri vs. Qnb Finansbank AS
Performance |
| Timeline |
| Kent Gida Maddeleri |
| Qnb Finansbank AS |
Kent Gida and Qnb Finansbank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kent Gida and Qnb Finansbank
The main advantage of trading using opposite Kent Gida and Qnb Finansbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kent Gida 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.| Kent Gida vs. Eregli Demir ve | Kent Gida vs. Turkiye Petrol Rafinerileri | Kent Gida vs. Turkiye Sise ve | Kent Gida vs. Ford Otomotiv 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |