Correlation Between QNB Finans and Akcansa Cimento
Can any of the company-specific risk be diversified away by investing in both QNB Finans and Akcansa 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 Akcansa 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 Akcansa Cimento Sanayi, you can compare the effects of market volatilities on QNB Finans and Akcansa 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 Akcansa Cimento. Check out your portfolio center. Please also check ongoing floating volatility patterns of QNB Finans and Akcansa Cimento.
Diversification Opportunities for QNB Finans and Akcansa Cimento
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between QNB and Akcansa is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding QNB Finans Finansal and Akcansa Cimento Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akcansa 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 Akcansa Cimento. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akcansa Cimento Sanayi has no effect on the direction of QNB Finans i.e., QNB Finans and Akcansa Cimento go up and down completely randomly.
Pair Corralation between QNB Finans and Akcansa Cimento
Assuming the 90 days trading horizon QNB Finans Finansal is expected to under-perform the Akcansa Cimento. In addition to that, QNB Finans is 1.17 times more volatile than Akcansa Cimento Sanayi. It trades about -0.09 of its total potential returns per unit of risk. Akcansa Cimento Sanayi is currently generating about 0.13 per unit of volatility. If you would invest 15,400 in Akcansa Cimento Sanayi on August 31, 2024 and sell it today you would earn a total of 1,040 from holding Akcansa Cimento Sanayi or generate 6.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
QNB Finans Finansal vs. Akcansa Cimento Sanayi
Performance |
| Timeline |
| QNB Finans Finansal |
| Akcansa Cimento Sanayi |
QNB Finans and Akcansa Cimento Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with QNB Finans and Akcansa Cimento
The main advantage of trading using opposite QNB Finans and Akcansa Cimento positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QNB Finans position performs unexpectedly, Akcansa 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 Akcansa Cimento will offset losses from the drop in Akcansa Cimento's long position.| QNB Finans vs. Sekerbank TAS | QNB Finans vs. Cuhadaroglu Metal Sanayi | QNB Finans vs. Koza Anadolu Metal | QNB Finans vs. Trabzonspor Sportif Yatirim |
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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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