Correlation Between Qnb Finansbank and Turkiye Petrol
Can any of the company-specific risk be diversified away by investing in both Qnb Finansbank and Turkiye Petrol 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 Turkiye Petrol 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 Turkiye Petrol Rafinerileri, you can compare the effects of market volatilities on Qnb Finansbank and Turkiye Petrol 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 Turkiye Petrol. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qnb Finansbank and Turkiye Petrol.
Diversification Opportunities for Qnb Finansbank and Turkiye Petrol
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Qnb and Turkiye is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Qnb Finansbank AS and Turkiye Petrol Rafinerileri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkiye Petrol Rafin 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 Turkiye Petrol. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turkiye Petrol Rafin has no effect on the direction of Qnb Finansbank i.e., Qnb Finansbank and Turkiye Petrol go up and down completely randomly.
Pair Corralation between Qnb Finansbank and Turkiye Petrol
Assuming the 90 days trading horizon Qnb Finansbank AS is expected to under-perform the Turkiye Petrol. But the stock apears to be less risky and, when comparing its historical volatility, Qnb Finansbank AS is 1.27 times less risky than Turkiye Petrol. The stock trades about -0.08 of its potential returns per unit of risk. The Turkiye Petrol Rafinerileri is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 14,900 in Turkiye Petrol Rafinerileri on August 27, 2024 and sell it today you would lose (260.00) from holding Turkiye Petrol Rafinerileri or give up 1.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Qnb Finansbank AS vs. Turkiye Petrol Rafinerileri
Performance |
| Timeline |
| Qnb Finansbank AS |
| Turkiye Petrol Rafin |
Qnb Finansbank and Turkiye Petrol Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qnb Finansbank and Turkiye Petrol
The main advantage of trading using opposite Qnb Finansbank and Turkiye Petrol positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qnb Finansbank position performs unexpectedly, Turkiye Petrol 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 Turkiye Petrol will offset losses from the drop in Turkiye Petrol'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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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