Correlation Between QNB Finans and Sekerbank TAS
Can any of the company-specific risk be diversified away by investing in both QNB Finans and Sekerbank TAS 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 Sekerbank TAS 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 Sekerbank TAS, you can compare the effects of market volatilities on QNB Finans and Sekerbank TAS 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 Sekerbank TAS. Check out your portfolio center. Please also check ongoing floating volatility patterns of QNB Finans and Sekerbank TAS.
Diversification Opportunities for QNB Finans and Sekerbank TAS
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between QNB and Sekerbank is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding QNB Finans Finansal and Sekerbank TAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sekerbank TAS 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 Sekerbank TAS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sekerbank TAS has no effect on the direction of QNB Finans i.e., QNB Finans and Sekerbank TAS go up and down completely randomly.
Pair Corralation between QNB Finans and Sekerbank TAS
Assuming the 90 days trading horizon QNB Finans Finansal is expected to generate 1.75 times more return on investment than Sekerbank TAS. However, QNB Finans is 1.75 times more volatile than Sekerbank TAS. It trades about 0.13 of its potential returns per unit of risk. Sekerbank TAS is currently generating about 0.08 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 | Very Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
QNB Finans Finansal vs. Sekerbank TAS
Performance |
| Timeline |
| QNB Finans Finansal |
| Sekerbank TAS |
QNB Finans and Sekerbank TAS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with QNB Finans and Sekerbank TAS
The main advantage of trading using opposite QNB Finans and Sekerbank TAS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QNB Finans position performs unexpectedly, Sekerbank TAS 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 Sekerbank TAS will offset losses from the drop in Sekerbank TAS'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 |
| Sekerbank TAS vs. Turkiye Sinai Kalkinma | Sekerbank TAS vs. Yapi ve Kredi | Sekerbank TAS vs. Kardemir Karabuk Demir | Sekerbank TAS vs. Turkiye Is Bankasi |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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