Correlation Between Qnb Finansbank and Baticim Bati
Can any of the company-specific risk be diversified away by investing in both Qnb Finansbank and Baticim Bati 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 Baticim Bati 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 Baticim Bati Anadolu, you can compare the effects of market volatilities on Qnb Finansbank and Baticim Bati 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 Baticim Bati. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qnb Finansbank and Baticim Bati.
Diversification Opportunities for Qnb Finansbank and Baticim Bati
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Qnb and Baticim is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Qnb Finansbank AS and Baticim Bati Anadolu in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baticim Bati Anadolu 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 Baticim Bati. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baticim Bati Anadolu has no effect on the direction of Qnb Finansbank i.e., Qnb Finansbank and Baticim Bati go up and down completely randomly.
Pair Corralation between Qnb Finansbank and Baticim Bati
Assuming the 90 days trading horizon Qnb Finansbank AS is expected to generate 1.37 times more return on investment than Baticim Bati. However, Qnb Finansbank is 1.37 times more volatile than Baticim Bati Anadolu. It trades about 0.09 of its potential returns per unit of risk. Baticim Bati Anadolu is currently generating about 0.09 per unit of risk. If you would invest 5,395 in Qnb Finansbank AS on September 14, 2024 and sell it today you would earn a total of 22,680 from holding Qnb Finansbank AS or generate 420.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qnb Finansbank AS vs. Baticim Bati Anadolu
Performance |
| Timeline |
| Qnb Finansbank AS |
| Baticim Bati Anadolu |
Qnb Finansbank and Baticim Bati Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qnb Finansbank and Baticim Bati
The main advantage of trading using opposite Qnb Finansbank and Baticim Bati positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qnb Finansbank position performs unexpectedly, Baticim Bati 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 Baticim Bati will offset losses from the drop in Baticim Bati's long position.| Qnb Finansbank vs. Silverline Endustri ve | Qnb Finansbank vs. Gentas Genel Metal | Qnb Finansbank vs. Politeknik Metal Sanayi | Qnb Finansbank vs. Koza Anadolu Metal |
| Baticim Bati vs. Bms Birlesik Metal | Baticim Bati vs. Qnb Finansbank AS | Baticim Bati vs. MEGA METAL | Baticim Bati vs. Politeknik Metal 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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