Correlation Between Qnb Finansbank and Koc Holding
Can any of the company-specific risk be diversified away by investing in both Qnb Finansbank and Koc Holding 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 Koc Holding 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 Koc Holding AS, you can compare the effects of market volatilities on Qnb Finansbank and Koc Holding 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 Koc Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qnb Finansbank and Koc Holding.
Diversification Opportunities for Qnb Finansbank and Koc Holding
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Qnb and Koc is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Qnb Finansbank AS and Koc Holding AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koc Holding AS 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 Koc Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koc Holding AS has no effect on the direction of Qnb Finansbank i.e., Qnb Finansbank and Koc Holding go up and down completely randomly.
Pair Corralation between Qnb Finansbank and Koc Holding
Assuming the 90 days trading horizon Qnb Finansbank AS is expected to under-perform the Koc Holding. But the stock apears to be less risky and, when comparing its historical volatility, Qnb Finansbank AS is 1.76 times less risky than Koc Holding. The stock trades about -0.08 of its potential returns per unit of risk. The Koc Holding AS is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 17,240 in Koc Holding AS on August 27, 2024 and sell it today you would earn a total of 2,190 from holding Koc Holding AS or generate 12.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Qnb Finansbank AS vs. Koc Holding AS
Performance |
| Timeline |
| Qnb Finansbank AS |
| Koc Holding AS |
Qnb Finansbank and Koc Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qnb Finansbank and Koc Holding
The main advantage of trading using opposite Qnb Finansbank and Koc Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qnb Finansbank position performs unexpectedly, Koc Holding 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 Koc Holding will offset losses from the drop in Koc Holding'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 |
| Koc Holding vs. Haci Omer Sabanci | Koc Holding vs. Turkiye Sise ve | Koc Holding vs. Turkiye Petrol Rafinerileri | Koc Holding 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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