Correlation Between QNB Finans and Akbank TAS
Can any of the company-specific risk be diversified away by investing in both QNB Finans and Akbank TAS 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 Akbank TAS 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 Akbank TAS, you can compare the effects of market volatilities on QNB Finans and Akbank TAS 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 Akbank TAS. Check out your portfolio center. Please also check ongoing floating volatility patterns of QNB Finans and Akbank TAS.
Diversification Opportunities for QNB Finans and Akbank TAS
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between QNB and Akbank is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding QNB Finans Finansal and Akbank TAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akbank TAS 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 Akbank TAS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akbank TAS has no effect on the direction of QNB Finans i.e., QNB Finans and Akbank TAS go up and down completely randomly.
Pair Corralation between QNB Finans and Akbank TAS
Assuming the 90 days trading horizon QNB Finans Finansal is expected to under-perform the Akbank TAS. But the stock apears to be less risky and, when comparing its historical volatility, QNB Finans Finansal is 1.1 times less risky than Akbank TAS. The stock trades about -0.06 of its potential returns per unit of risk. The Akbank TAS is currently generating about 0.44 of returns per unit of risk over similar time horizon. If you would invest 4,696 in Akbank TAS on September 3, 2024 and sell it today you would earn a total of 1,389 from holding Akbank TAS or generate 29.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
QNB Finans Finansal vs. Akbank TAS
Performance |
| Timeline |
| QNB Finans Finansal |
| Akbank TAS |
QNB Finans and Akbank TAS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with QNB Finans and Akbank TAS
The main advantage of trading using opposite QNB Finans and Akbank TAS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QNB Finans position performs unexpectedly, Akbank TAS 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 Akbank TAS will offset losses from the drop in Akbank TAS's long position.| QNB Finans vs. Akbank TAS | QNB Finans vs. Turkish Airlines | QNB Finans vs. Gentas Genel Metal | QNB Finans vs. Borlease Otomotiv AS |
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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