Correlation Between Qnb Finansbank and Birlik Mensucat
Can any of the company-specific risk be diversified away by investing in both Qnb Finansbank and Birlik Mensucat 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 Birlik Mensucat 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 Birlik Mensucat Ticaret, you can compare the effects of market volatilities on Qnb Finansbank and Birlik Mensucat 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 Birlik Mensucat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qnb Finansbank and Birlik Mensucat.
Diversification Opportunities for Qnb Finansbank and Birlik Mensucat
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Qnb and Birlik is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Qnb Finansbank AS and Birlik Mensucat Ticaret in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Birlik Mensucat Ticaret 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 Birlik Mensucat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Birlik Mensucat Ticaret has no effect on the direction of Qnb Finansbank i.e., Qnb Finansbank and Birlik Mensucat go up and down completely randomly.
Pair Corralation between Qnb Finansbank and Birlik Mensucat
Assuming the 90 days trading horizon Qnb Finansbank AS is expected to generate 1.02 times more return on investment than Birlik Mensucat. However, Qnb Finansbank is 1.02 times more volatile than Birlik Mensucat Ticaret. It trades about 0.1 of its potential returns per unit of risk. Birlik Mensucat Ticaret is currently generating about 0.07 per unit of risk. If you would invest 5,100 in Qnb Finansbank AS on August 24, 2024 and sell it today you would earn a total of 22,850 from holding Qnb Finansbank AS or generate 448.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qnb Finansbank AS vs. Birlik Mensucat Ticaret
Performance |
| Timeline |
| Qnb Finansbank AS |
| Birlik Mensucat Ticaret |
Qnb Finansbank and Birlik Mensucat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qnb Finansbank and Birlik Mensucat
The main advantage of trading using opposite Qnb Finansbank and Birlik Mensucat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qnb Finansbank position performs unexpectedly, Birlik Mensucat 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 Birlik Mensucat will offset losses from the drop in Birlik Mensucat'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 |
| Birlik Mensucat vs. Qnb Finansbank AS | Birlik Mensucat vs. Kent Gida Maddeleri | Birlik Mensucat vs. QNB Finans Finansal | Birlik Mensucat vs. Turkiye Kalkinma Bankasi |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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