Correlation Between Qnb Finansbank and Politeknik Metal
Can any of the company-specific risk be diversified away by investing in both Qnb Finansbank and Politeknik Metal 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 Politeknik Metal 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 Politeknik Metal Sanayi, you can compare the effects of market volatilities on Qnb Finansbank and Politeknik Metal 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 Politeknik Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qnb Finansbank and Politeknik Metal.
Diversification Opportunities for Qnb Finansbank and Politeknik Metal
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Qnb and Politeknik is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Qnb Finansbank AS and Politeknik Metal Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Politeknik Metal 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 Politeknik Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Politeknik Metal Sanayi has no effect on the direction of Qnb Finansbank i.e., Qnb Finansbank and Politeknik Metal go up and down completely randomly.
Pair Corralation between Qnb Finansbank and Politeknik Metal
Assuming the 90 days trading horizon Qnb Finansbank is expected to generate 1.01 times less return on investment than Politeknik Metal. In addition to that, Qnb Finansbank is 1.03 times more volatile than Politeknik Metal Sanayi. It trades about 0.1 of its total potential returns per unit of risk. Politeknik Metal Sanayi is currently generating about 0.1 per unit of volatility. If you would invest 112,885 in Politeknik Metal Sanayi on August 27, 2024 and sell it today you would earn a total of 539,615 from holding Politeknik Metal Sanayi or generate 478.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.8% |
| Values | Daily Returns |
Qnb Finansbank AS vs. Politeknik Metal Sanayi
Performance |
| Timeline |
| Qnb Finansbank AS |
| Politeknik Metal Sanayi |
Qnb Finansbank and Politeknik Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qnb Finansbank and Politeknik Metal
The main advantage of trading using opposite Qnb Finansbank and Politeknik Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qnb Finansbank position performs unexpectedly, Politeknik Metal 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 Politeknik Metal will offset losses from the drop in Politeknik Metal'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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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