Correlation Between Turkiye Kalkinma and QNB Finans
Can any of the company-specific risk be diversified away by investing in both Turkiye Kalkinma and QNB Finans 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 Turkiye Kalkinma and QNB Finans into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Turkiye Kalkinma Bankasi and QNB Finans Finansal, you can compare the effects of market volatilities on Turkiye Kalkinma and QNB Finans 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 Turkiye Kalkinma with a short position of QNB Finans. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Kalkinma and QNB Finans.
Diversification Opportunities for Turkiye Kalkinma and QNB Finans
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Turkiye and QNB is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Kalkinma Bankasi and QNB Finans Finansal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QNB Finans Finansal and Turkiye Kalkinma 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 Turkiye Kalkinma Bankasi are associated (or correlated) with QNB Finans. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QNB Finans Finansal has no effect on the direction of Turkiye Kalkinma i.e., Turkiye Kalkinma and QNB Finans go up and down completely randomly.
Pair Corralation between Turkiye Kalkinma and QNB Finans
Assuming the 90 days trading horizon Turkiye Kalkinma Bankasi is expected to generate 0.46 times more return on investment than QNB Finans. However, Turkiye Kalkinma Bankasi is 2.19 times less risky than QNB Finans. It trades about 0.0 of its potential returns per unit of risk. QNB Finans Finansal is currently generating about -0.08 per unit of risk. If you would invest 1,494 in Turkiye Kalkinma Bankasi on August 28, 2024 and sell it today you would lose (4.00) from holding Turkiye Kalkinma Bankasi or give up 0.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turkiye Kalkinma Bankasi vs. QNB Finans Finansal
Performance |
| Timeline |
| Turkiye Kalkinma Bankasi |
| QNB Finans Finansal |
Turkiye Kalkinma and QNB Finans Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Kalkinma and QNB Finans
The main advantage of trading using opposite Turkiye Kalkinma and QNB Finans positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Kalkinma position performs unexpectedly, QNB Finans 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 Finans will offset losses from the drop in QNB Finans' long position.| Turkiye Kalkinma vs. Qnb Finansbank AS | Turkiye Kalkinma vs. Turkiye Vakiflar Bankasi | Turkiye Kalkinma vs. Turkiye Halk Bankasi | Turkiye Kalkinma vs. Turkiye Sinai Kalkinma |
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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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