Correlation Between Qnb Finansbank and Cemtas Celik
Can any of the company-specific risk be diversified away by investing in both Qnb Finansbank and Cemtas Celik 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 Cemtas Celik 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 Cemtas Celik Makina, you can compare the effects of market volatilities on Qnb Finansbank and Cemtas Celik 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 Cemtas Celik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qnb Finansbank and Cemtas Celik.
Diversification Opportunities for Qnb Finansbank and Cemtas Celik
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Qnb and Cemtas is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Qnb Finansbank AS and Cemtas Celik Makina in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cemtas Celik Makina 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 Cemtas Celik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cemtas Celik Makina has no effect on the direction of Qnb Finansbank i.e., Qnb Finansbank and Cemtas Celik go up and down completely randomly.
Pair Corralation between Qnb Finansbank and Cemtas Celik
Assuming the 90 days trading horizon Qnb Finansbank is expected to generate 1.3 times less return on investment than Cemtas Celik. But when comparing it to its historical volatility, Qnb Finansbank AS is 3.65 times less risky than Cemtas Celik. It trades about 0.09 of its potential returns per unit of risk. Cemtas Celik Makina is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,231 in Cemtas Celik Makina on September 3, 2024 and sell it today you would lose (346.00) from holding Cemtas Celik Makina or give up 28.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.8% |
| Values | Daily Returns |
Qnb Finansbank AS vs. Cemtas Celik Makina
Performance |
| Timeline |
| Qnb Finansbank AS |
| Cemtas Celik Makina |
Qnb Finansbank and Cemtas Celik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qnb Finansbank and Cemtas Celik
The main advantage of trading using opposite Qnb Finansbank and Cemtas Celik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qnb Finansbank position performs unexpectedly, Cemtas Celik 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 Cemtas Celik will offset losses from the drop in Cemtas Celik'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 |
| Cemtas Celik vs. Qnb Finansbank AS | Cemtas Celik vs. Turkiye Kalkinma Bankasi | Cemtas Celik vs. Kocaer Celik Sanayi | Cemtas Celik vs. Cimentas Izmir Cimento |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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