Correlation Between Turkish Airlines and Qnb Finansbank
Can any of the company-specific risk be diversified away by investing in both Turkish Airlines and Qnb Finansbank 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 Turkish Airlines and Qnb Finansbank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Turkish Airlines and Qnb Finansbank AS, you can compare the effects of market volatilities on Turkish Airlines and Qnb Finansbank 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 Turkish Airlines with a short position of Qnb Finansbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkish Airlines and Qnb Finansbank.
Diversification Opportunities for Turkish Airlines and Qnb Finansbank
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Turkish and Qnb is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Turkish Airlines and Qnb Finansbank AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qnb Finansbank AS and Turkish Airlines 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 Turkish Airlines are associated (or correlated) with Qnb Finansbank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qnb Finansbank AS has no effect on the direction of Turkish Airlines i.e., Turkish Airlines and Qnb Finansbank go up and down completely randomly.
Pair Corralation between Turkish Airlines and Qnb Finansbank
Assuming the 90 days trading horizon Turkish Airlines is expected to generate 0.46 times more return on investment than Qnb Finansbank. However, Turkish Airlines is 2.18 times less risky than Qnb Finansbank. It trades about 0.33 of its potential returns per unit of risk. Qnb Finansbank AS is currently generating about 0.02 per unit of risk. If you would invest 28,750 in Turkish Airlines on November 2, 2024 and sell it today you would earn a total of 2,550 from holding Turkish Airlines or generate 8.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turkish Airlines vs. Qnb Finansbank AS
Performance |
| Timeline |
| Turkish Airlines |
| Qnb Finansbank AS |
Turkish Airlines and Qnb Finansbank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkish Airlines and Qnb Finansbank
The main advantage of trading using opposite Turkish Airlines and Qnb Finansbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkish Airlines position performs unexpectedly, Qnb Finansbank 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 Finansbank will offset losses from the drop in Qnb Finansbank's long position.| Turkish Airlines vs. Aselsan Elektronik Sanayi | Turkish Airlines vs. Turkiye Petrol Rafinerileri | Turkish Airlines vs. Pegasus Hava Tasimaciligi | Turkish Airlines vs. Turkiye Sise ve |
| Qnb Finansbank vs. SASA Polyester Sanayi | Qnb Finansbank vs. Turkish Airlines | Qnb Finansbank vs. Koc Holding AS | Qnb Finansbank vs. Ford Otomotiv 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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