Correlation Between Qnb Finansbank and Hektas Ticaret
Can any of the company-specific risk be diversified away by investing in both Qnb Finansbank and Hektas Ticaret 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 Hektas Ticaret 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 Hektas Ticaret TAS, you can compare the effects of market volatilities on Qnb Finansbank and Hektas Ticaret 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 Hektas Ticaret. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qnb Finansbank and Hektas Ticaret.
Diversification Opportunities for Qnb Finansbank and Hektas Ticaret
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Qnb and Hektas is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Qnb Finansbank AS and Hektas Ticaret TAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hektas Ticaret TAS 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 Hektas Ticaret. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hektas Ticaret TAS has no effect on the direction of Qnb Finansbank i.e., Qnb Finansbank and Hektas Ticaret go up and down completely randomly.
Pair Corralation between Qnb Finansbank and Hektas Ticaret
Assuming the 90 days trading horizon Qnb Finansbank AS is expected to generate 1.96 times more return on investment than Hektas Ticaret. However, Qnb Finansbank is 1.96 times more volatile than Hektas Ticaret TAS. It trades about 0.12 of its potential returns per unit of risk. Hektas Ticaret TAS is currently generating about -0.1 per unit of risk. If you would invest 5,500 in Qnb Finansbank AS on August 26, 2024 and sell it today you would earn a total of 22,450 from holding Qnb Finansbank AS or generate 408.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.7% |
| Values | Daily Returns |
Qnb Finansbank AS vs. Hektas Ticaret TAS
Performance |
| Timeline |
| Qnb Finansbank AS |
| Hektas Ticaret TAS |
Qnb Finansbank and Hektas Ticaret Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qnb Finansbank and Hektas Ticaret
The main advantage of trading using opposite Qnb Finansbank and Hektas Ticaret positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qnb Finansbank position performs unexpectedly, Hektas Ticaret 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 Hektas Ticaret will offset losses from the drop in Hektas Ticaret'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 |
| Hektas Ticaret vs. Qnb Finansbank AS | Hektas Ticaret vs. QNB Finans Finansal | Hektas Ticaret vs. Turkiye Kalkinma Bankasi | Hektas Ticaret 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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