Correlation Between QNB Finans and Kardemir Karabuk
Can any of the company-specific risk be diversified away by investing in both QNB Finans and Kardemir Karabuk 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 Kardemir Karabuk 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 Kardemir Karabuk Demir, you can compare the effects of market volatilities on QNB Finans and Kardemir Karabuk 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 Kardemir Karabuk. Check out your portfolio center. Please also check ongoing floating volatility patterns of QNB Finans and Kardemir Karabuk.
Diversification Opportunities for QNB Finans and Kardemir Karabuk
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between QNB and Kardemir is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding QNB Finans Finansal and Kardemir Karabuk Demir in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kardemir Karabuk Demir 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 Kardemir Karabuk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kardemir Karabuk Demir has no effect on the direction of QNB Finans i.e., QNB Finans and Kardemir Karabuk go up and down completely randomly.
Pair Corralation between QNB Finans and Kardemir Karabuk
Assuming the 90 days trading horizon QNB Finans Finansal is expected to under-perform the Kardemir Karabuk. In addition to that, QNB Finans is 1.21 times more volatile than Kardemir Karabuk Demir. It trades about -0.08 of its total potential returns per unit of risk. Kardemir Karabuk Demir is currently generating about 0.24 per unit of volatility. If you would invest 2,452 in Kardemir Karabuk Demir on August 28, 2024 and sell it today you would earn a total of 288.00 from holding Kardemir Karabuk Demir or generate 11.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
QNB Finans Finansal vs. Kardemir Karabuk Demir
Performance |
| Timeline |
| QNB Finans Finansal |
| Kardemir Karabuk Demir |
QNB Finans and Kardemir Karabuk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with QNB Finans and Kardemir Karabuk
The main advantage of trading using opposite QNB Finans and Kardemir Karabuk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QNB Finans position performs unexpectedly, Kardemir Karabuk 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 Kardemir Karabuk will offset losses from the drop in Kardemir Karabuk's long position.| QNB Finans vs. Galatasaray Sportif Sinai | QNB Finans vs. Creditwest Faktoring AS | QNB Finans vs. Trabzonspor Sportif Yatirim | QNB Finans vs. Koza Anadolu Metal |
| Kardemir Karabuk vs. Qnb Finansbank AS | Kardemir Karabuk vs. QNB Finans Finansal | Kardemir Karabuk vs. Turkiye Kalkinma Bankasi | Kardemir Karabuk vs. Kocaer Celik 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.
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