Correlation Between Qnb Finansbank and Petrokent Turizm
Can any of the company-specific risk be diversified away by investing in both Qnb Finansbank and Petrokent Turizm 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 Petrokent Turizm 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 Petrokent Turizm AS, you can compare the effects of market volatilities on Qnb Finansbank and Petrokent Turizm 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 Petrokent Turizm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qnb Finansbank and Petrokent Turizm.
Diversification Opportunities for Qnb Finansbank and Petrokent Turizm
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Qnb and Petrokent is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Qnb Finansbank AS and Petrokent Turizm AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Petrokent Turizm 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 Petrokent Turizm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Petrokent Turizm has no effect on the direction of Qnb Finansbank i.e., Qnb Finansbank and Petrokent Turizm go up and down completely randomly.
Pair Corralation between Qnb Finansbank and Petrokent Turizm
Assuming the 90 days trading horizon Qnb Finansbank AS is expected to generate 1.13 times more return on investment than Petrokent Turizm. However, Qnb Finansbank is 1.13 times more volatile than Petrokent Turizm AS. It trades about 0.1 of its potential returns per unit of risk. Petrokent Turizm AS is currently generating about 0.05 per unit of risk. If you would invest 4,780 in Qnb Finansbank AS on October 9, 2024 and sell it today you would earn a total of 23,620 from holding Qnb Finansbank AS or generate 494.14% 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. Petrokent Turizm AS
Performance |
| Timeline |
| Qnb Finansbank AS |
| Petrokent Turizm |
Qnb Finansbank and Petrokent Turizm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qnb Finansbank and Petrokent Turizm
The main advantage of trading using opposite Qnb Finansbank and Petrokent Turizm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qnb Finansbank position performs unexpectedly, Petrokent Turizm 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 Petrokent Turizm will offset losses from the drop in Petrokent Turizm's 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 |
| Petrokent Turizm vs. Eminis Ambalaj Sanayi | Petrokent Turizm vs. Ekiz Kimya Sanayi | Petrokent Turizm vs. Brisa Bridgestone Sabanci | Petrokent Turizm vs. IZDEMIR Enerji Elektrik |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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