Correlation Between Qnb Finansbank and Nuh Cimento
Can any of the company-specific risk be diversified away by investing in both Qnb Finansbank and Nuh Cimento 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 Nuh Cimento 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 Nuh Cimento Sanayi, you can compare the effects of market volatilities on Qnb Finansbank and Nuh Cimento 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 Nuh Cimento. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qnb Finansbank and Nuh Cimento.
Diversification Opportunities for Qnb Finansbank and Nuh Cimento
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Qnb and Nuh is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Qnb Finansbank AS and Nuh Cimento Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuh Cimento 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 Nuh Cimento. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuh Cimento Sanayi has no effect on the direction of Qnb Finansbank i.e., Qnb Finansbank and Nuh Cimento go up and down completely randomly.
Pair Corralation between Qnb Finansbank and Nuh Cimento
Assuming the 90 days trading horizon Qnb Finansbank AS is expected to generate 1.27 times more return on investment than Nuh Cimento. However, Qnb Finansbank is 1.27 times more volatile than Nuh Cimento Sanayi. It trades about 0.1 of its potential returns per unit of risk. Nuh Cimento Sanayi is currently generating about 0.08 per unit of risk. If you would invest 4,860 in Qnb Finansbank AS on August 29, 2024 and sell it today you would earn a total of 23,615 from holding Qnb Finansbank AS or generate 485.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qnb Finansbank AS vs. Nuh Cimento Sanayi
Performance |
| Timeline |
| Qnb Finansbank AS |
| Nuh Cimento Sanayi |
Qnb Finansbank and Nuh Cimento Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qnb Finansbank and Nuh Cimento
The main advantage of trading using opposite Qnb Finansbank and Nuh Cimento positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qnb Finansbank position performs unexpectedly, Nuh Cimento 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 Nuh Cimento will offset losses from the drop in Nuh Cimento'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 |
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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