Correlation Between Qnb Finansbank and Gentas Genel
Can any of the company-specific risk be diversified away by investing in both Qnb Finansbank and Gentas Genel 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 Gentas Genel 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 Gentas Genel Metal, you can compare the effects of market volatilities on Qnb Finansbank and Gentas Genel 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 Gentas Genel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qnb Finansbank and Gentas Genel.
Diversification Opportunities for Qnb Finansbank and Gentas Genel
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Qnb and Gentas is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Qnb Finansbank AS and Gentas Genel Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gentas Genel Metal 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 Gentas Genel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gentas Genel Metal has no effect on the direction of Qnb Finansbank i.e., Qnb Finansbank and Gentas Genel go up and down completely randomly.
Pair Corralation between Qnb Finansbank and Gentas Genel
Assuming the 90 days trading horizon Qnb Finansbank AS is expected to generate 1.69 times more return on investment than Gentas Genel. However, Qnb Finansbank is 1.69 times more volatile than Gentas Genel Metal. It trades about 0.03 of its potential returns per unit of risk. Gentas Genel Metal is currently generating about 0.01 per unit of risk. If you would invest 25,475 in Qnb Finansbank AS on August 29, 2024 and sell it today you would earn a total of 2,400 from holding Qnb Finansbank AS or generate 9.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.51% |
| Values | Daily Returns |
Qnb Finansbank AS vs. Gentas Genel Metal
Performance |
| Timeline |
| Qnb Finansbank AS |
| Gentas Genel Metal |
Qnb Finansbank and Gentas Genel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qnb Finansbank and Gentas Genel
The main advantage of trading using opposite Qnb Finansbank and Gentas Genel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qnb Finansbank position performs unexpectedly, Gentas Genel 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 Gentas Genel will offset losses from the drop in Gentas Genel'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 |
| Gentas Genel vs. Haci Omer Sabanci | Gentas Genel vs. Turkiye Sise ve | Gentas Genel vs. Turkiye Petrol Rafinerileri | Gentas Genel vs. Turkiye Garanti 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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