Correlation Between Qnb Finansbank and SASA Polyester
Can any of the company-specific risk be diversified away by investing in both Qnb Finansbank and SASA Polyester 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 SASA Polyester 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 SASA Polyester Sanayi, you can compare the effects of market volatilities on Qnb Finansbank and SASA Polyester 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 SASA Polyester. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qnb Finansbank and SASA Polyester.
Diversification Opportunities for Qnb Finansbank and SASA Polyester
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Qnb and SASA is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Qnb Finansbank AS and SASA Polyester Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SASA Polyester 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 SASA Polyester. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SASA Polyester Sanayi has no effect on the direction of Qnb Finansbank i.e., Qnb Finansbank and SASA Polyester go up and down completely randomly.
Pair Corralation between Qnb Finansbank and SASA Polyester
Assuming the 90 days trading horizon Qnb Finansbank AS is expected to under-perform the SASA Polyester. But the stock apears to be less risky and, when comparing its historical volatility, Qnb Finansbank AS is 1.16 times less risky than SASA Polyester. The stock trades about -0.01 of its potential returns per unit of risk. The SASA Polyester Sanayi is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 383.00 in SASA Polyester Sanayi on September 13, 2024 and sell it today you would earn a total of 44.00 from holding SASA Polyester Sanayi or generate 11.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qnb Finansbank AS vs. SASA Polyester Sanayi
Performance |
| Timeline |
| Qnb Finansbank AS |
| SASA Polyester Sanayi |
Qnb Finansbank and SASA Polyester Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qnb Finansbank and SASA Polyester
The main advantage of trading using opposite Qnb Finansbank and SASA Polyester positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qnb Finansbank position performs unexpectedly, SASA Polyester 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 SASA Polyester will offset losses from the drop in SASA Polyester'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 |
| SASA Polyester vs. Hektas Ticaret TAS | SASA Polyester vs. Eregli Demir ve | SASA Polyester vs. Turkiye Sise ve | SASA Polyester vs. Turkiye Petrol Rafinerileri |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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