Correlation Between Naturelgaz Sanayi and Qnb Finansbank
Can any of the company-specific risk be diversified away by investing in both Naturelgaz Sanayi 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 Naturelgaz Sanayi and Qnb Finansbank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Naturelgaz Sanayi ve and Qnb Finansbank AS, you can compare the effects of market volatilities on Naturelgaz Sanayi 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 Naturelgaz Sanayi with a short position of Qnb Finansbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Naturelgaz Sanayi and Qnb Finansbank.
Diversification Opportunities for Naturelgaz Sanayi and Qnb Finansbank
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Naturelgaz and Qnb is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Naturelgaz Sanayi ve 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 Naturelgaz Sanayi 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 Naturelgaz Sanayi ve 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 Naturelgaz Sanayi i.e., Naturelgaz Sanayi and Qnb Finansbank go up and down completely randomly.
Pair Corralation between Naturelgaz Sanayi and Qnb Finansbank
Assuming the 90 days trading horizon Naturelgaz Sanayi ve is expected to under-perform the Qnb Finansbank. In addition to that, Naturelgaz Sanayi is 1.08 times more volatile than Qnb Finansbank AS. It trades about -0.02 of its total potential returns per unit of risk. Qnb Finansbank AS is currently generating about 0.01 per unit of volatility. 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Naturelgaz Sanayi ve vs. Qnb Finansbank AS
Performance |
| Timeline |
| Naturelgaz Sanayi |
| Qnb Finansbank AS |
Naturelgaz Sanayi and Qnb Finansbank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Naturelgaz Sanayi and Qnb Finansbank
The main advantage of trading using opposite Naturelgaz Sanayi and Qnb Finansbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Naturelgaz Sanayi 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.| Naturelgaz Sanayi vs. Ahlatci Dogal Gaz | Naturelgaz Sanayi vs. KOC METALURJI | Naturelgaz Sanayi vs. Aksa Akrilik Kimya | Naturelgaz Sanayi vs. CW Enerji SA |
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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