Correlation Between Qnb Finansbank and Cimentas Izmir
Can any of the company-specific risk be diversified away by investing in both Qnb Finansbank and Cimentas Izmir 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 Cimentas Izmir 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 Cimentas Izmir Cimento, you can compare the effects of market volatilities on Qnb Finansbank and Cimentas Izmir 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 Cimentas Izmir. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qnb Finansbank and Cimentas Izmir.
Diversification Opportunities for Qnb Finansbank and Cimentas Izmir
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Qnb and Cimentas is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Qnb Finansbank AS and Cimentas Izmir Cimento in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cimentas Izmir Cimento 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 Cimentas Izmir. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cimentas Izmir Cimento has no effect on the direction of Qnb Finansbank i.e., Qnb Finansbank and Cimentas Izmir go up and down completely randomly.
Pair Corralation between Qnb Finansbank and Cimentas Izmir
Assuming the 90 days trading horizon Qnb Finansbank is expected to generate 95.56 times less return on investment than Cimentas Izmir. But when comparing it to its historical volatility, Qnb Finansbank AS is 1.82 times less risky than Cimentas Izmir. It trades about 0.01 of its potential returns per unit of risk. Cimentas Izmir Cimento is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 37,325 in Cimentas Izmir Cimento on August 28, 2024 and sell it today you would earn a total of 5,650 from holding Cimentas Izmir Cimento or generate 15.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Qnb Finansbank AS vs. Cimentas Izmir Cimento
Performance |
| Timeline |
| Qnb Finansbank AS |
| Cimentas Izmir Cimento |
Qnb Finansbank and Cimentas Izmir Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qnb Finansbank and Cimentas Izmir
The main advantage of trading using opposite Qnb Finansbank and Cimentas Izmir positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qnb Finansbank position performs unexpectedly, Cimentas Izmir 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 Cimentas Izmir will offset losses from the drop in Cimentas Izmir's long position.| Qnb Finansbank vs. Turkiye Is Bankasi | Qnb Finansbank vs. Haci Omer Sabanci | Qnb Finansbank vs. Turkiye Vakiflar Bankasi | Qnb Finansbank vs. Turkiye Halk Bankasi |
| Cimentas Izmir vs. Qnb Finansbank AS | Cimentas Izmir vs. QNB Finans Finansal | Cimentas Izmir vs. Turkiye Kalkinma Bankasi | Cimentas Izmir vs. Kocaer Celik 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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