Correlation Between Petrokent Turizm and Qnb Finansbank
Can any of the company-specific risk be diversified away by investing in both Petrokent Turizm 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 Petrokent Turizm and Qnb Finansbank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Petrokent Turizm AS and Qnb Finansbank AS, you can compare the effects of market volatilities on Petrokent Turizm 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 Petrokent Turizm with a short position of Qnb Finansbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Petrokent Turizm and Qnb Finansbank.
Diversification Opportunities for Petrokent Turizm and Qnb Finansbank
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Petrokent and Qnb is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Petrokent Turizm AS 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 Petrokent Turizm 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 Petrokent Turizm AS 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 Petrokent Turizm i.e., Petrokent Turizm and Qnb Finansbank go up and down completely randomly.
Pair Corralation between Petrokent Turizm and Qnb Finansbank
Assuming the 90 days trading horizon Petrokent Turizm AS is expected to generate 1.17 times more return on investment than Qnb Finansbank. However, Petrokent Turizm is 1.17 times more volatile than Qnb Finansbank AS. It trades about 0.2 of its potential returns per unit of risk. Qnb Finansbank AS is currently generating about 0.05 per unit of risk. If you would invest 24,370 in Petrokent Turizm AS on October 9, 2024 and sell it today you would earn a total of 2,880 from holding Petrokent Turizm AS or generate 11.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Petrokent Turizm AS vs. Qnb Finansbank AS
Performance |
| Timeline |
| Petrokent Turizm |
| Qnb Finansbank AS |
Petrokent Turizm and Qnb Finansbank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Petrokent Turizm and Qnb Finansbank
The main advantage of trading using opposite Petrokent Turizm and Qnb Finansbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Petrokent Turizm 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.| Petrokent Turizm vs. Eminis Ambalaj Sanayi | Petrokent Turizm vs. Ekiz Kimya Sanayi | Petrokent Turizm vs. Brisa Bridgestone Sabanci | Petrokent Turizm vs. IZDEMIR Enerji Elektrik |
| 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |