Correlation Between QNB Finans and Galatasaray Sportif
Can any of the company-specific risk be diversified away by investing in both QNB Finans and Galatasaray Sportif 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 Galatasaray Sportif 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 Galatasaray Sportif Sinai, you can compare the effects of market volatilities on QNB Finans and Galatasaray Sportif 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 Galatasaray Sportif. Check out your portfolio center. Please also check ongoing floating volatility patterns of QNB Finans and Galatasaray Sportif.
Diversification Opportunities for QNB Finans and Galatasaray Sportif
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between QNB and Galatasaray is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding QNB Finans Finansal and Galatasaray Sportif Sinai in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Galatasaray Sportif Sinai 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 Galatasaray Sportif. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Galatasaray Sportif Sinai has no effect on the direction of QNB Finans i.e., QNB Finans and Galatasaray Sportif go up and down completely randomly.
Pair Corralation between QNB Finans and Galatasaray Sportif
Assuming the 90 days trading horizon QNB Finans Finansal is expected to generate 1.72 times more return on investment than Galatasaray Sportif. However, QNB Finans is 1.72 times more volatile than Galatasaray Sportif Sinai. It trades about 0.13 of its potential returns per unit of risk. Galatasaray Sportif Sinai is currently generating about 0.06 per unit of risk. If you would invest 969.00 in QNB Finans Finansal on August 31, 2024 and sell it today you would earn a total of 8,176 from holding QNB Finans Finansal or generate 843.76% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 99.73% |
Values | Daily Returns |
QNB Finans Finansal vs. Galatasaray Sportif Sinai
Performance |
Timeline |
QNB Finans Finansal |
Galatasaray Sportif Sinai |
QNB Finans and Galatasaray Sportif Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with QNB Finans and Galatasaray Sportif
The main advantage of trading using opposite QNB Finans and Galatasaray Sportif positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QNB Finans position performs unexpectedly, Galatasaray Sportif 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 Galatasaray Sportif will offset losses from the drop in Galatasaray Sportif'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 |
Galatasaray Sportif vs. ICBC Turkey Bank | Galatasaray Sportif vs. Qnb Finansbank AS | Galatasaray Sportif vs. E Data Teknoloji Pazarlama | Galatasaray Sportif vs. Sodas Sodyum Sanayi |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |