Correlation Between QNB Finans and Gedik Yatirim
Can any of the company-specific risk be diversified away by investing in both QNB Finans and Gedik Yatirim 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 Gedik Yatirim 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 Gedik Yatirim Menkul, you can compare the effects of market volatilities on QNB Finans and Gedik Yatirim 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 Gedik Yatirim. Check out your portfolio center. Please also check ongoing floating volatility patterns of QNB Finans and Gedik Yatirim.
Diversification Opportunities for QNB Finans and Gedik Yatirim
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between QNB and Gedik is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding QNB Finans Finansal and Gedik Yatirim Menkul in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gedik Yatirim Menkul 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 Gedik Yatirim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gedik Yatirim Menkul has no effect on the direction of QNB Finans i.e., QNB Finans and Gedik Yatirim go up and down completely randomly.
Pair Corralation between QNB Finans and Gedik Yatirim
Assuming the 90 days trading horizon QNB Finans Finansal is expected to generate 2.0 times more return on investment than Gedik Yatirim. However, QNB Finans is 2.0 times more volatile than Gedik Yatirim Menkul. It trades about 0.13 of its potential returns per unit of risk. Gedik Yatirim Menkul is currently generating about 0.07 per unit of risk. If you would invest 1,093 in QNB Finans Finansal on August 28, 2024 and sell it today you would earn a total of 8,197 from holding QNB Finans Finansal or generate 749.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
QNB Finans Finansal vs. Gedik Yatirim Menkul
Performance |
| Timeline |
| QNB Finans Finansal |
| Gedik Yatirim Menkul |
QNB Finans and Gedik Yatirim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with QNB Finans and Gedik Yatirim
The main advantage of trading using opposite QNB Finans and Gedik Yatirim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QNB Finans position performs unexpectedly, Gedik Yatirim 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 Gedik Yatirim will offset losses from the drop in Gedik Yatirim'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 |
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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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