Correlation Between Seker Finansal and QNB Finans
Can any of the company-specific risk be diversified away by investing in both Seker Finansal and QNB Finans 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 Seker Finansal and QNB Finans into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Seker Finansal Kiralama and QNB Finans Finansal, you can compare the effects of market volatilities on Seker Finansal and QNB Finans 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 Seker Finansal with a short position of QNB Finans. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seker Finansal and QNB Finans.
Diversification Opportunities for Seker Finansal and QNB Finans
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Seker and QNB is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Seker Finansal Kiralama and QNB Finans Finansal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QNB Finans Finansal and Seker Finansal 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 Seker Finansal Kiralama are associated (or correlated) with QNB Finans. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QNB Finans Finansal has no effect on the direction of Seker Finansal i.e., Seker Finansal and QNB Finans go up and down completely randomly.
Pair Corralation between Seker Finansal and QNB Finans
Assuming the 90 days trading horizon Seker Finansal Kiralama is expected to generate 0.63 times more return on investment than QNB Finans. However, Seker Finansal Kiralama is 1.59 times less risky than QNB Finans. It trades about 0.14 of its potential returns per unit of risk. QNB Finans Finansal is currently generating about -0.08 per unit of risk. If you would invest 758.00 in Seker Finansal Kiralama on August 29, 2024 and sell it today you would earn a total of 41.00 from holding Seker Finansal Kiralama or generate 5.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Seker Finansal Kiralama vs. QNB Finans Finansal
Performance |
| Timeline |
| Seker Finansal Kiralama |
| QNB Finans Finansal |
Seker Finansal and QNB Finans Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seker Finansal and QNB Finans
The main advantage of trading using opposite Seker Finansal and QNB Finans positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seker Finansal position performs unexpectedly, QNB Finans 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 QNB Finans will offset losses from the drop in QNB Finans' long position.| Seker Finansal vs. Borlease Otomotiv AS | Seker Finansal vs. Galatasaray Sportif Sinai | Seker Finansal vs. MEGA METAL | Seker Finansal vs. Akcansa Cimento Sanayi |
| QNB Finans vs. Bms Birlesik Metal | QNB Finans vs. Mackolik Internet Hizmetleri | QNB Finans vs. Akcansa Cimento Sanayi | QNB Finans 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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