Correlation Between Qnb Finansbank and Turkiye Is
Can any of the company-specific risk be diversified away by investing in both Qnb Finansbank and Turkiye Is 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 Turkiye Is 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 Turkiye Is Bankasi, you can compare the effects of market volatilities on Qnb Finansbank and Turkiye Is 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 Turkiye Is. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qnb Finansbank and Turkiye Is.
Diversification Opportunities for Qnb Finansbank and Turkiye Is
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Qnb and Turkiye is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Qnb Finansbank AS and Turkiye Is Bankasi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkiye Is Bankasi 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 Turkiye Is. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turkiye Is Bankasi has no effect on the direction of Qnb Finansbank i.e., Qnb Finansbank and Turkiye Is go up and down completely randomly.
Pair Corralation between Qnb Finansbank and Turkiye Is
Assuming the 90 days trading horizon Qnb Finansbank is expected to generate 1.86 times less return on investment than Turkiye Is. But when comparing it to its historical volatility, Qnb Finansbank AS is 1.05 times less risky than Turkiye Is. It trades about 0.09 of its potential returns per unit of risk. Turkiye Is Bankasi is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 4,999,994 in Turkiye Is Bankasi on September 12, 2024 and sell it today you would earn a total of 51,100,006 from holding Turkiye Is Bankasi or generate 1022.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.48% |
| Values | Daily Returns |
Qnb Finansbank AS vs. Turkiye Is Bankasi
Performance |
| Timeline |
| Qnb Finansbank AS |
| Turkiye Is Bankasi |
Qnb Finansbank and Turkiye Is Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qnb Finansbank and Turkiye Is
The main advantage of trading using opposite Qnb Finansbank and Turkiye Is positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qnb Finansbank position performs unexpectedly, Turkiye Is 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 Turkiye Is will offset losses from the drop in Turkiye Is' long position.| Qnb Finansbank vs. SASA Polyester Sanayi | Qnb Finansbank vs. Turkish Airlines | Qnb Finansbank vs. Koc Holding AS | Qnb Finansbank vs. Ford Otomotiv Sanayi |
| Turkiye Is vs. Akbank TAS | Turkiye Is vs. Qnb Finansbank AS | Turkiye Is vs. Cuhadaroglu Metal Sanayi | Turkiye Is vs. Borlease Otomotiv 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |