Correlation Between Qnb Finansbank and Akcansa Cimento
Can any of the company-specific risk be diversified away by investing in both Qnb Finansbank and Akcansa Cimento 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 Akcansa Cimento 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 Akcansa Cimento Sanayi, you can compare the effects of market volatilities on Qnb Finansbank and Akcansa Cimento 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 Akcansa Cimento. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qnb Finansbank and Akcansa Cimento.
Diversification Opportunities for Qnb Finansbank and Akcansa Cimento
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Qnb and Akcansa is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Qnb Finansbank AS and Akcansa Cimento Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akcansa Cimento Sanayi 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 Akcansa Cimento. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akcansa Cimento Sanayi has no effect on the direction of Qnb Finansbank i.e., Qnb Finansbank and Akcansa Cimento go up and down completely randomly.
Pair Corralation between Qnb Finansbank and Akcansa Cimento
Assuming the 90 days trading horizon Qnb Finansbank is expected to generate 3.3 times less return on investment than Akcansa Cimento. In addition to that, Qnb Finansbank is 1.96 times more volatile than Akcansa Cimento Sanayi. It trades about 0.04 of its total potential returns per unit of risk. Akcansa Cimento Sanayi is currently generating about 0.23 per unit of volatility. If you would invest 17,640 in Akcansa Cimento Sanayi on October 23, 2024 and sell it today you would earn a total of 1,160 from holding Akcansa Cimento Sanayi or generate 6.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qnb Finansbank AS vs. Akcansa Cimento Sanayi
Performance |
| Timeline |
| Qnb Finansbank AS |
| Akcansa Cimento Sanayi |
Qnb Finansbank and Akcansa Cimento Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qnb Finansbank and Akcansa Cimento
The main advantage of trading using opposite Qnb Finansbank and Akcansa Cimento positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qnb Finansbank position performs unexpectedly, Akcansa Cimento 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 Akcansa Cimento will offset losses from the drop in Akcansa Cimento's long position.| Qnb Finansbank vs. MEGA METAL | Qnb Finansbank vs. Koza Anadolu Metal | Qnb Finansbank vs. ICBC Turkey Bank | Qnb Finansbank vs. Politeknik Metal Sanayi |
| Akcansa Cimento vs. CEO Event Medya | Akcansa Cimento vs. Borlease Otomotiv AS | Akcansa Cimento vs. Trabzonspor Sportif Yatirim | Akcansa Cimento vs. Turkiye Kalkinma 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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