Correlation Between QNB Finans and Afyon Cimento
Can any of the company-specific risk be diversified away by investing in both QNB Finans and Afyon 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 Finans and Afyon Cimento into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between QNB Finans Finansal and Afyon Cimento Sanayi, you can compare the effects of market volatilities on QNB Finans and Afyon 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 Finans with a short position of Afyon Cimento. Check out your portfolio center. Please also check ongoing floating volatility patterns of QNB Finans and Afyon Cimento.
Diversification Opportunities for QNB Finans and Afyon Cimento
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between QNB and Afyon is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding QNB Finans Finansal and Afyon Cimento Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Afyon Cimento Sanayi and QNB Finans 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 Finans Finansal are associated (or correlated) with Afyon Cimento. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Afyon Cimento Sanayi has no effect on the direction of QNB Finans i.e., QNB Finans and Afyon Cimento go up and down completely randomly.
Pair Corralation between QNB Finans and Afyon Cimento
Assuming the 90 days trading horizon QNB Finans Finansal is expected to under-perform the Afyon Cimento. But the stock apears to be less risky and, when comparing its historical volatility, QNB Finans Finansal is 1.01 times less risky than Afyon Cimento. The stock trades about -0.08 of its potential returns per unit of risk. The Afyon Cimento Sanayi is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 1,525 in Afyon Cimento Sanayi on August 29, 2024 and sell it today you would lose (72.00) from holding Afyon Cimento Sanayi or give up 4.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
QNB Finans Finansal vs. Afyon Cimento Sanayi
Performance |
| Timeline |
| QNB Finans Finansal |
| Afyon Cimento Sanayi |
QNB Finans and Afyon Cimento Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with QNB Finans and Afyon Cimento
The main advantage of trading using opposite QNB Finans and Afyon Cimento positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QNB Finans position performs unexpectedly, Afyon 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 Afyon Cimento will offset losses from the drop in Afyon Cimento's long position.| QNB Finans vs. Is Finansal Kiralama | QNB Finans vs. Garanti Faktoring AS | QNB Finans vs. Lider Faktoring AS | QNB Finans vs. Seker Finansal Kiralama |
| Afyon Cimento vs. MEGA METAL | Afyon Cimento vs. E Data Teknoloji Pazarlama | Afyon Cimento vs. Gentas Genel Metal | Afyon Cimento vs. Politeknik Metal 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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