Correlation Between Politeknik Metal and QNB Finans
Can any of the company-specific risk be diversified away by investing in both Politeknik Metal 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 Politeknik Metal and QNB Finans into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Politeknik Metal Sanayi and QNB Finans Finansal, you can compare the effects of market volatilities on Politeknik Metal 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 Politeknik Metal with a short position of QNB Finans. Check out your portfolio center. Please also check ongoing floating volatility patterns of Politeknik Metal and QNB Finans.
Diversification Opportunities for Politeknik Metal and QNB Finans
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Politeknik and QNB is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Politeknik Metal Sanayi 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 Politeknik Metal 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 Politeknik Metal Sanayi 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 Politeknik Metal i.e., Politeknik Metal and QNB Finans go up and down completely randomly.
Pair Corralation between Politeknik Metal and QNB Finans
Assuming the 90 days trading horizon Politeknik Metal Sanayi is expected to generate 1.46 times more return on investment than QNB Finans. However, Politeknik Metal is 1.46 times more volatile than QNB Finans Finansal. It trades about -0.11 of its potential returns per unit of risk. QNB Finans Finansal is currently generating about -0.53 per unit of risk. If you would invest 690,250 in Politeknik Metal Sanayi on November 27, 2024 and sell it today you would lose (56,250) from holding Politeknik Metal Sanayi or give up 8.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 23.81% |
| Values | Daily Returns |
Politeknik Metal Sanayi vs. QNB Finans Finansal
Performance |
| Timeline |
| Politeknik Metal Sanayi |
| QNB Finans Finansal |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Politeknik Metal and QNB Finans Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Politeknik Metal and QNB Finans
The main advantage of trading using opposite Politeknik Metal and QNB Finans positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Politeknik Metal 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.| Politeknik Metal vs. Mackolik Internet Hizmetleri | Politeknik Metal vs. KOC METALURJI | Politeknik Metal vs. ICBC Turkey Bank | Politeknik Metal vs. Gentas Genel Metal |
| QNB Finans vs. MEGA METAL | QNB Finans vs. Borlease Otomotiv AS | QNB Finans vs. Koza Anadolu Metal | QNB Finans vs. KOC METALURJI |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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