Correlation Between Qnb Finansbank and MMC Sanayi
Can any of the company-specific risk be diversified away by investing in both Qnb Finansbank and MMC Sanayi 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 MMC Sanayi 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 MMC Sanayi ve, you can compare the effects of market volatilities on Qnb Finansbank and MMC Sanayi 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 MMC Sanayi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qnb Finansbank and MMC Sanayi.
Diversification Opportunities for Qnb Finansbank and MMC Sanayi
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Qnb and MMC is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Qnb Finansbank AS and MMC Sanayi ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MMC Sanayi ve 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 MMC Sanayi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MMC Sanayi ve has no effect on the direction of Qnb Finansbank i.e., Qnb Finansbank and MMC Sanayi go up and down completely randomly.
Pair Corralation between Qnb Finansbank and MMC Sanayi
Assuming the 90 days trading horizon Qnb Finansbank AS is expected to generate 0.98 times more return on investment than MMC Sanayi. However, Qnb Finansbank AS is 1.03 times less risky than MMC Sanayi. It trades about 0.12 of its potential returns per unit of risk. MMC Sanayi ve is currently generating about 0.09 per unit of risk. If you would invest 3,924 in Qnb Finansbank AS on August 31, 2024 and sell it today you would earn a total of 23,376 from holding Qnb Finansbank AS or generate 595.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.74% |
| Values | Daily Returns |
Qnb Finansbank AS vs. MMC Sanayi ve
Performance |
| Timeline |
| Qnb Finansbank AS |
| MMC Sanayi ve |
Qnb Finansbank and MMC Sanayi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qnb Finansbank and MMC Sanayi
The main advantage of trading using opposite Qnb Finansbank and MMC Sanayi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qnb Finansbank position performs unexpectedly, MMC Sanayi 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 MMC Sanayi will offset losses from the drop in MMC Sanayi'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 |
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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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