Correlation Between Turk Tuborg and QNB Finans
Can any of the company-specific risk be diversified away by investing in both Turk Tuborg 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 Turk Tuborg and QNB Finans into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Turk Tuborg Bira and QNB Finans Finansal, you can compare the effects of market volatilities on Turk Tuborg 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 Turk Tuborg with a short position of QNB Finans. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turk Tuborg and QNB Finans.
Diversification Opportunities for Turk Tuborg and QNB Finans
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Turk and QNB is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Turk Tuborg Bira 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 Turk Tuborg 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 Turk Tuborg Bira 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 Turk Tuborg i.e., Turk Tuborg and QNB Finans go up and down completely randomly.
Pair Corralation between Turk Tuborg and QNB Finans
Assuming the 90 days trading horizon Turk Tuborg Bira is expected to generate 0.92 times more return on investment than QNB Finans. However, Turk Tuborg Bira is 1.09 times less risky than QNB Finans. It trades about 0.11 of its potential returns per unit of risk. QNB Finans Finansal is currently generating about -0.09 per unit of risk. If you would invest 12,800 in Turk Tuborg Bira on August 31, 2024 and sell it today you would earn a total of 720.00 from holding Turk Tuborg Bira or generate 5.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turk Tuborg Bira vs. QNB Finans Finansal
Performance |
| Timeline |
| Turk Tuborg Bira |
| QNB Finans Finansal |
Turk Tuborg and QNB Finans Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turk Tuborg and QNB Finans
The main advantage of trading using opposite Turk Tuborg and QNB Finans positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turk Tuborg 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.| Turk Tuborg vs. Eregli Demir ve | Turk Tuborg vs. Turkiye Petrol Rafinerileri | Turk Tuborg vs. Turkiye Sise ve | Turk Tuborg vs. Ford Otomotiv Sanayi |
| QNB Finans vs. Sekerbank TAS | QNB Finans vs. Cuhadaroglu Metal Sanayi | QNB Finans vs. Koza Anadolu Metal | QNB Finans vs. Trabzonspor Sportif Yatirim |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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