Correlation Between Lider Faktoring and QNB Finans
Can any of the company-specific risk be diversified away by investing in both Lider Faktoring 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 Lider Faktoring and QNB Finans into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lider Faktoring AS and QNB Finans Finansal, you can compare the effects of market volatilities on Lider Faktoring 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 Lider Faktoring with a short position of QNB Finans. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lider Faktoring and QNB Finans.
Diversification Opportunities for Lider Faktoring and QNB Finans
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Lider and QNB is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Lider Faktoring AS 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 Lider Faktoring 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 Lider Faktoring AS 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 Lider Faktoring i.e., Lider Faktoring and QNB Finans go up and down completely randomly.
Pair Corralation between Lider Faktoring and QNB Finans
Assuming the 90 days trading horizon Lider Faktoring AS is expected to generate 1.01 times more return on investment than QNB Finans. However, Lider Faktoring is 1.01 times more volatile than QNB Finans Finansal. It trades about -0.03 of its potential returns per unit of risk. QNB Finans Finansal is currently generating about -0.12 per unit of risk. If you would invest 318.00 in Lider Faktoring AS on August 25, 2024 and sell it today you would lose (14.00) from holding Lider Faktoring AS or give up 4.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lider Faktoring AS vs. QNB Finans Finansal
Performance |
| Timeline |
| Lider Faktoring AS |
| QNB Finans Finansal |
Lider Faktoring and QNB Finans Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lider Faktoring and QNB Finans
The main advantage of trading using opposite Lider Faktoring and QNB Finans positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lider Faktoring 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.| Lider Faktoring vs. Bms Birlesik Metal | Lider Faktoring vs. Turkish Airlines | Lider Faktoring vs. Creditwest Faktoring AS | Lider Faktoring vs. Cuhadaroglu Metal Sanayi |
| QNB Finans vs. Is Finansal Kiralama | QNB Finans vs. Garanti Faktoring AS | QNB Finans vs. Lider Faktoring AS | QNB Finans vs. Seker Finansal Kiralama |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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