Correlation Between Qnb Finansbank and SASA Polyester
Can any of the company-specific risk be diversified away by investing in both Qnb Finansbank and SASA Polyester 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 SASA Polyester 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 SASA Polyester Sanayi, you can compare the effects of market volatilities on Qnb Finansbank and SASA Polyester 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 SASA Polyester. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qnb Finansbank and SASA Polyester.
Diversification Opportunities for Qnb Finansbank and SASA Polyester
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Qnb and SASA is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Qnb Finansbank AS and SASA Polyester Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SASA Polyester 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 SASA Polyester. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SASA Polyester Sanayi has no effect on the direction of Qnb Finansbank i.e., Qnb Finansbank and SASA Polyester go up and down completely randomly.
Pair Corralation between Qnb Finansbank and SASA Polyester
Assuming the 90 days trading horizon Qnb Finansbank AS is expected to under-perform the SASA Polyester. But the stock apears to be less risky and, when comparing its historical volatility, Qnb Finansbank AS is 1.93 times less risky than SASA Polyester. The stock trades about -0.06 of its potential returns per unit of risk. The SASA Polyester Sanayi is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 393.00 in SASA Polyester Sanayi on August 28, 2024 and sell it today you would earn a total of 30.00 from holding SASA Polyester Sanayi or generate 7.63% 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. SASA Polyester Sanayi
Performance |
| Timeline |
| Qnb Finansbank AS |
| SASA Polyester Sanayi |
Qnb Finansbank and SASA Polyester Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qnb Finansbank and SASA Polyester
The main advantage of trading using opposite Qnb Finansbank and SASA Polyester positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qnb Finansbank position performs unexpectedly, SASA Polyester 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 SASA Polyester will offset losses from the drop in SASA Polyester'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 |
| SASA Polyester vs. Qnb Finansbank AS | SASA Polyester vs. QNB Finans Finansal | SASA Polyester vs. Turkiye Kalkinma Bankasi | SASA Polyester vs. Kocaer Celik Sanayi |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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