Correlation Between Qnb Finansbank and Turkish Airlines
Can any of the company-specific risk be diversified away by investing in both Qnb Finansbank and Turkish Airlines 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 Turkish Airlines 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 Turkish Airlines, you can compare the effects of market volatilities on Qnb Finansbank and Turkish Airlines 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 Turkish Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qnb Finansbank and Turkish Airlines.
Diversification Opportunities for Qnb Finansbank and Turkish Airlines
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Qnb and Turkish is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Qnb Finansbank AS and Turkish Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkish Airlines 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 Turkish Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turkish Airlines has no effect on the direction of Qnb Finansbank i.e., Qnb Finansbank and Turkish Airlines go up and down completely randomly.
Pair Corralation between Qnb Finansbank and Turkish Airlines
Assuming the 90 days trading horizon Qnb Finansbank AS is expected to generate 2.0 times more return on investment than Turkish Airlines. However, Qnb Finansbank is 2.0 times more volatile than Turkish Airlines. It trades about 0.1 of its potential returns per unit of risk. Turkish Airlines is currently generating about 0.08 per unit of risk. If you would invest 4,100 in Qnb Finansbank AS on December 2, 2024 and sell it today you would earn a total of 23,300 from holding Qnb Finansbank AS or generate 568.29% 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. Turkish Airlines
Performance |
| Timeline |
| Qnb Finansbank AS |
| Turkish Airlines |
Qnb Finansbank and Turkish Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qnb Finansbank and Turkish Airlines
The main advantage of trading using opposite Qnb Finansbank and Turkish Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qnb Finansbank position performs unexpectedly, Turkish Airlines 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 Turkish Airlines will offset losses from the drop in Turkish Airlines' long position.| Qnb Finansbank vs. Gentas Genel Metal | ||
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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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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