Correlation Between QNB Finans and Bms Birlesik
Can any of the company-specific risk be diversified away by investing in both QNB Finans and Bms Birlesik 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 Bms Birlesik 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 Bms Birlesik Metal, you can compare the effects of market volatilities on QNB Finans and Bms Birlesik 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 Bms Birlesik. Check out your portfolio center. Please also check ongoing floating volatility patterns of QNB Finans and Bms Birlesik.
Diversification Opportunities for QNB Finans and Bms Birlesik
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between QNB and Bms is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding QNB Finans Finansal and Bms Birlesik Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bms Birlesik Metal 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 Bms Birlesik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bms Birlesik Metal has no effect on the direction of QNB Finans i.e., QNB Finans and Bms Birlesik go up and down completely randomly.
Pair Corralation between QNB Finans and Bms Birlesik
Assuming the 90 days trading horizon QNB Finans Finansal is expected to under-perform the Bms Birlesik. But the stock apears to be less risky and, when comparing its historical volatility, QNB Finans Finansal is 1.15 times less risky than Bms Birlesik. The stock trades about -0.13 of its potential returns per unit of risk. The Bms Birlesik Metal is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 2,411 in Bms Birlesik Metal on August 29, 2024 and sell it today you would earn a total of 463.00 from holding Bms Birlesik Metal or generate 19.2% 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. Bms Birlesik Metal
Performance |
| Timeline |
| QNB Finans Finansal |
| Bms Birlesik Metal |
QNB Finans and Bms Birlesik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with QNB Finans and Bms Birlesik
The main advantage of trading using opposite QNB Finans and Bms Birlesik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QNB Finans position performs unexpectedly, Bms Birlesik 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 Bms Birlesik will offset losses from the drop in Bms Birlesik'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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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