Correlation Between QNB Finans and Aksa Akrilik
Can any of the company-specific risk be diversified away by investing in both QNB Finans and Aksa Akrilik 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 Aksa Akrilik 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 Aksa Akrilik Kimya, you can compare the effects of market volatilities on QNB Finans and Aksa Akrilik 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 Aksa Akrilik. Check out your portfolio center. Please also check ongoing floating volatility patterns of QNB Finans and Aksa Akrilik.
Diversification Opportunities for QNB Finans and Aksa Akrilik
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between QNB and Aksa is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding QNB Finans Finansal and Aksa Akrilik Kimya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aksa Akrilik Kimya 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 Aksa Akrilik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aksa Akrilik Kimya has no effect on the direction of QNB Finans i.e., QNB Finans and Aksa Akrilik go up and down completely randomly.
Pair Corralation between QNB Finans and Aksa Akrilik
Assuming the 90 days trading horizon QNB Finans Finansal is expected to generate 2.04 times more return on investment than Aksa Akrilik. However, QNB Finans is 2.04 times more volatile than Aksa Akrilik Kimya. It trades about 0.08 of its potential returns per unit of risk. Aksa Akrilik Kimya is currently generating about 0.06 per unit of risk. If you would invest 3,956 in QNB Finans Finansal on August 29, 2024 and sell it today you would earn a total of 5,324 from holding QNB Finans Finansal or generate 134.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
QNB Finans Finansal vs. Aksa Akrilik Kimya
Performance |
| Timeline |
| QNB Finans Finansal |
| Aksa Akrilik Kimya |
QNB Finans and Aksa Akrilik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with QNB Finans and Aksa Akrilik
The main advantage of trading using opposite QNB Finans and Aksa Akrilik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QNB Finans position performs unexpectedly, Aksa Akrilik 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 Aksa Akrilik will offset losses from the drop in Aksa Akrilik's long position.| QNB Finans vs. Bms Birlesik Metal | QNB Finans vs. Mackolik Internet Hizmetleri | QNB Finans vs. Akcansa Cimento Sanayi | QNB Finans vs. Politeknik Metal Sanayi |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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