Correlation Between Qnb Finansbank and Akbank TAS
Can any of the company-specific risk be diversified away by investing in both Qnb Finansbank and Akbank 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 Finansbank and Akbank TAS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Qnb Finansbank AS and Akbank TAS, you can compare the effects of market volatilities on Qnb Finansbank and Akbank 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 Finansbank with a short position of Akbank TAS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qnb Finansbank and Akbank TAS.
Diversification Opportunities for Qnb Finansbank and Akbank TAS
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Qnb and Akbank is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Qnb Finansbank AS and Akbank TAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akbank TAS and Qnb Finansbank 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 Finansbank AS are associated (or correlated) with Akbank TAS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akbank TAS has no effect on the direction of Qnb Finansbank i.e., Qnb Finansbank and Akbank TAS go up and down completely randomly.
Pair Corralation between Qnb Finansbank and Akbank TAS
Assuming the 90 days trading horizon Qnb Finansbank AS is expected to generate 1.38 times more return on investment than Akbank TAS. However, Qnb Finansbank is 1.38 times more volatile than Akbank TAS. It trades about 0.02 of its potential returns per unit of risk. Akbank TAS is currently generating about -0.04 per unit of risk. If you would invest 26,550 in Qnb Finansbank AS on November 3, 2024 and sell it today you would earn a total of 150.00 from holding Qnb Finansbank AS or generate 0.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qnb Finansbank AS vs. Akbank TAS
Performance |
| Timeline |
| Qnb Finansbank AS |
| Akbank TAS |
Qnb Finansbank and Akbank TAS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qnb Finansbank and Akbank TAS
The main advantage of trading using opposite Qnb Finansbank and Akbank TAS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qnb Finansbank position performs unexpectedly, Akbank 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 Akbank TAS will offset losses from the drop in Akbank TAS's long position.| Qnb Finansbank vs. Politeknik Metal Sanayi | Qnb Finansbank vs. Koza Anadolu Metal | Qnb Finansbank vs. Silverline Endustri ve | Qnb Finansbank vs. Akbank TAS |
| Akbank TAS vs. Turkiye Garanti Bankasi | Akbank TAS vs. Yapi ve Kredi | Akbank TAS vs. Turkiye Is Bankasi | Akbank TAS vs. Koc Holding AS |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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