Correlation Between Qnb Finansbank and Unlu Yatirim
Can any of the company-specific risk be diversified away by investing in both Qnb Finansbank and Unlu Yatirim 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 Unlu Yatirim 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 Unlu Yatirim Holding, you can compare the effects of market volatilities on Qnb Finansbank and Unlu Yatirim 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 Unlu Yatirim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qnb Finansbank and Unlu Yatirim.
Diversification Opportunities for Qnb Finansbank and Unlu Yatirim
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Qnb and Unlu is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Qnb Finansbank AS and Unlu Yatirim Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unlu Yatirim Holding 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 Unlu Yatirim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unlu Yatirim Holding has no effect on the direction of Qnb Finansbank i.e., Qnb Finansbank and Unlu Yatirim go up and down completely randomly.
Pair Corralation between Qnb Finansbank and Unlu Yatirim
Assuming the 90 days trading horizon Qnb Finansbank AS is expected to generate 1.45 times more return on investment than Unlu Yatirim. However, Qnb Finansbank is 1.45 times more volatile than Unlu Yatirim Holding. It trades about 0.09 of its potential returns per unit of risk. Unlu Yatirim Holding is currently generating about 0.03 per unit of risk. If you would invest 5,715 in Qnb Finansbank AS on September 1, 2024 and sell it today you would earn a total of 21,285 from holding Qnb Finansbank AS or generate 372.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Qnb Finansbank AS vs. Unlu Yatirim Holding
Performance |
| Timeline |
| Qnb Finansbank AS |
| Unlu Yatirim Holding |
Qnb Finansbank and Unlu Yatirim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qnb Finansbank and Unlu Yatirim
The main advantage of trading using opposite Qnb Finansbank and Unlu Yatirim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qnb Finansbank position performs unexpectedly, Unlu Yatirim 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 Unlu Yatirim will offset losses from the drop in Unlu Yatirim'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 |
| Unlu Yatirim vs. Politeknik Metal Sanayi | Unlu Yatirim vs. Qnb Finansbank AS | Unlu Yatirim vs. Gentas Genel Metal | Unlu Yatirim vs. MEGA METAL |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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