Correlation Between Qnb Finansbank and Borlease Otomotiv
Can any of the company-specific risk be diversified away by investing in both Qnb Finansbank and Borlease Otomotiv 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 Qnb Finansbank and Borlease Otomotiv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Qnb Finansbank AS and Borlease Otomotiv AS, you can compare the effects of market volatilities on Qnb Finansbank and Borlease Otomotiv 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 Qnb Finansbank with a short position of Borlease Otomotiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qnb Finansbank and Borlease Otomotiv.
Diversification Opportunities for Qnb Finansbank and Borlease Otomotiv
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Qnb and Borlease is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Qnb Finansbank AS and Borlease Otomotiv AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Borlease Otomotiv and Qnb Finansbank 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 Qnb Finansbank AS are associated (or correlated) with Borlease Otomotiv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Borlease Otomotiv has no effect on the direction of Qnb Finansbank i.e., Qnb Finansbank and Borlease Otomotiv go up and down completely randomly.
Pair Corralation between Qnb Finansbank and Borlease Otomotiv
Assuming the 90 days trading horizon Qnb Finansbank AS is expected to under-perform the Borlease Otomotiv. But the stock apears to be less risky and, when comparing its historical volatility, Qnb Finansbank AS is 1.01 times less risky than Borlease Otomotiv. The stock trades about -0.15 of its potential returns per unit of risk. The Borlease Otomotiv AS is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 3,944 in Borlease Otomotiv AS on August 29, 2024 and sell it today you would earn a total of 1,091 from holding Borlease Otomotiv AS or generate 27.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
Qnb Finansbank AS vs. Borlease Otomotiv AS
Performance |
| Timeline |
| Qnb Finansbank AS |
| Borlease Otomotiv |
Qnb Finansbank and Borlease Otomotiv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qnb Finansbank and Borlease Otomotiv
The main advantage of trading using opposite Qnb Finansbank and Borlease Otomotiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qnb Finansbank position performs unexpectedly, Borlease Otomotiv 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 Borlease Otomotiv will offset losses from the drop in Borlease Otomotiv's long position.| Qnb Finansbank vs. Turkiye Halk Bankasi | Qnb Finansbank vs. Turkiye Vakiflar Bankasi | Qnb Finansbank vs. Turkiye Garanti Bankasi | Qnb Finansbank vs. Yapi ve Kredi |
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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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