Correlation Between QNB Finans and Margun Enerji
Can any of the company-specific risk be diversified away by investing in both QNB Finans and Margun Enerji 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 Margun Enerji 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 Margun Enerji Uretim, you can compare the effects of market volatilities on QNB Finans and Margun Enerji 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 Margun Enerji. Check out your portfolio center. Please also check ongoing floating volatility patterns of QNB Finans and Margun Enerji.
Diversification Opportunities for QNB Finans and Margun Enerji
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between QNB and Margun is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding QNB Finans Finansal and Margun Enerji Uretim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Margun Enerji Uretim 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 Margun Enerji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Margun Enerji Uretim has no effect on the direction of QNB Finans i.e., QNB Finans and Margun Enerji go up and down completely randomly.
Pair Corralation between QNB Finans and Margun Enerji
Assuming the 90 days trading horizon QNB Finans Finansal is expected to generate 1.46 times more return on investment than Margun Enerji. However, QNB Finans is 1.46 times more volatile than Margun Enerji Uretim. It trades about 0.13 of its potential returns per unit of risk. Margun Enerji Uretim is currently generating about 0.03 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 Together |
| Strength | Significant |
| Accuracy | 99.72% |
| Values | Daily Returns |
QNB Finans Finansal vs. Margun Enerji Uretim
Performance |
| Timeline |
| QNB Finans Finansal |
| Margun Enerji Uretim |
QNB Finans and Margun Enerji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with QNB Finans and Margun Enerji
The main advantage of trading using opposite QNB Finans and Margun Enerji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QNB Finans position performs unexpectedly, Margun Enerji 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 Margun Enerji will offset losses from the drop in Margun Enerji'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 |
| Margun Enerji vs. Qnb Finansbank AS | Margun Enerji vs. Gentas Genel Metal | Margun Enerji vs. Cuhadaroglu Metal Sanayi | Margun Enerji vs. Koza Anadolu Metal |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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