Correlation Between Qnb Finansbank and Kocaer Celik
Can any of the company-specific risk be diversified away by investing in both Qnb Finansbank and Kocaer 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 Kocaer 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 Kocaer Celik Sanayi, you can compare the effects of market volatilities on Qnb Finansbank and Kocaer 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 Kocaer Celik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qnb Finansbank and Kocaer Celik.
Diversification Opportunities for Qnb Finansbank and Kocaer Celik
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Qnb and Kocaer is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Qnb Finansbank AS and Kocaer Celik Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kocaer Celik Sanayi 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 Kocaer Celik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kocaer Celik Sanayi has no effect on the direction of Qnb Finansbank i.e., Qnb Finansbank and Kocaer Celik go up and down completely randomly.
Pair Corralation between Qnb Finansbank and Kocaer Celik
Assuming the 90 days trading horizon Qnb Finansbank is expected to generate 50.59 times less return on investment than Kocaer Celik. But when comparing it to its historical volatility, Qnb Finansbank AS is 1.6 times less risky than Kocaer Celik. It trades about 0.01 of its potential returns per unit of risk. Kocaer Celik Sanayi is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 3,710 in Kocaer Celik Sanayi on August 28, 2024 and sell it today you would earn a total of 360.00 from holding Kocaer Celik Sanayi or generate 9.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qnb Finansbank AS vs. Kocaer Celik Sanayi
Performance |
| Timeline |
| Qnb Finansbank AS |
| Kocaer Celik Sanayi |
Qnb Finansbank and Kocaer Celik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qnb Finansbank and Kocaer Celik
The main advantage of trading using opposite Qnb Finansbank and Kocaer Celik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qnb Finansbank position performs unexpectedly, Kocaer 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 Kocaer Celik will offset losses from the drop in Kocaer Celik'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 |
| Kocaer Celik vs. Eregli Demir ve | Kocaer Celik vs. Iskenderun Demir ve | Kocaer Celik vs. Borusan Yatirim ve | Kocaer Celik vs. Kardemir Karabuk Demir |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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