Correlation Between QNB Finans and Hedef Holdings
Can any of the company-specific risk be diversified away by investing in both QNB Finans and Hedef Holdings 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 Hedef Holdings 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 Hedef Holdings AS, you can compare the effects of market volatilities on QNB Finans and Hedef Holdings 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 Hedef Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of QNB Finans and Hedef Holdings.
Diversification Opportunities for QNB Finans and Hedef Holdings
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between QNB and Hedef is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding QNB Finans Finansal and Hedef Holdings AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hedef Holdings AS 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 Hedef Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hedef Holdings AS has no effect on the direction of QNB Finans i.e., QNB Finans and Hedef Holdings go up and down completely randomly.
Pair Corralation between QNB Finans and Hedef Holdings
Assuming the 90 days trading horizon QNB Finans Finansal is expected to under-perform the Hedef Holdings. But the stock apears to be less risky and, when comparing its historical volatility, QNB Finans Finansal is 2.19 times less risky than Hedef Holdings. The stock trades about -0.13 of its potential returns per unit of risk. The Hedef Holdings AS is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 358.00 in Hedef Holdings AS on November 2, 2024 and sell it today you would earn a total of 59.00 from holding Hedef Holdings AS or generate 16.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
QNB Finans Finansal vs. Hedef Holdings AS
Performance |
| Timeline |
| QNB Finans Finansal |
| Hedef Holdings AS |
QNB Finans and Hedef Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with QNB Finans and Hedef Holdings
The main advantage of trading using opposite QNB Finans and Hedef Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QNB Finans position performs unexpectedly, Hedef Holdings 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 Hedef Holdings will offset losses from the drop in Hedef Holdings' 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 |
| Hedef Holdings vs. Verusa Holding AS | Hedef Holdings vs. GSD Holding AS | Hedef Holdings vs. Guler Yatirim Holding | Hedef Holdings vs. Verusaturk Girisim Sermayesi |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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