Correlation Between KOC METALURJI and Qnb Finansbank
Can any of the company-specific risk be diversified away by investing in both KOC METALURJI 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 METALURJI 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 METALURJI and Qnb Finansbank AS, you can compare the effects of market volatilities on KOC METALURJI 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 METALURJI with a short position of Qnb Finansbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of KOC METALURJI and Qnb Finansbank.
Diversification Opportunities for KOC METALURJI and Qnb Finansbank
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between KOC and Qnb is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding KOC METALURJI 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 METALURJI 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 METALURJI 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 METALURJI i.e., KOC METALURJI and Qnb Finansbank go up and down completely randomly.
Pair Corralation between KOC METALURJI and Qnb Finansbank
Assuming the 90 days trading horizon KOC METALURJI is expected to generate 1.16 times more return on investment than Qnb Finansbank. However, KOC METALURJI is 1.16 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 -0.11 per unit of risk. If you would invest 1,725 in KOC METALURJI on November 2, 2024 and sell it today you would lose (223.00) from holding KOC METALURJI or give up 12.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KOC METALURJI vs. Qnb Finansbank AS
Performance |
| Timeline |
| KOC METALURJI |
| Qnb Finansbank AS |
KOC METALURJI and Qnb Finansbank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KOC METALURJI and Qnb Finansbank
The main advantage of trading using opposite KOC METALURJI and Qnb Finansbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KOC METALURJI 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 METALURJI vs. Turkiye Kalkinma Bankasi | KOC METALURJI vs. Koza Anadolu Metal | KOC METALURJI vs. Akcansa Cimento Sanayi | KOC METALURJI vs. MEGA METAL |
| 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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