Correlation Between QNB Finans and Kent Gida
Can any of the company-specific risk be diversified away by investing in both QNB Finans and Kent Gida 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 Kent Gida 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 Kent Gida Maddeleri, you can compare the effects of market volatilities on QNB Finans and Kent Gida 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 Kent Gida. Check out your portfolio center. Please also check ongoing floating volatility patterns of QNB Finans and Kent Gida.
Diversification Opportunities for QNB Finans and Kent Gida
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between QNB and Kent is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding QNB Finans Finansal and Kent Gida Maddeleri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kent Gida Maddeleri 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 Kent Gida. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kent Gida Maddeleri has no effect on the direction of QNB Finans i.e., QNB Finans and Kent Gida go up and down completely randomly.
Pair Corralation between QNB Finans and Kent Gida
Assuming the 90 days trading horizon QNB Finans Finansal is expected to generate 1.63 times more return on investment than Kent Gida. However, QNB Finans is 1.63 times more volatile than Kent Gida Maddeleri. It trades about -0.13 of its potential returns per unit of risk. Kent Gida Maddeleri is currently generating about -0.45 per unit of risk. If you would invest 4,324 in QNB Finans Finansal on November 2, 2024 and sell it today you would lose (284.00) from holding QNB Finans Finansal or give up 6.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
QNB Finans Finansal vs. Kent Gida Maddeleri
Performance |
| Timeline |
| QNB Finans Finansal |
| Kent Gida Maddeleri |
QNB Finans and Kent Gida Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with QNB Finans and Kent Gida
The main advantage of trading using opposite QNB Finans and Kent Gida positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QNB Finans position performs unexpectedly, Kent Gida 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 Kent Gida will offset losses from the drop in Kent Gida'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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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