Correlation Between Turk Traktor and QNB Finans
Can any of the company-specific risk be diversified away by investing in both Turk Traktor 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 Traktor 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 Traktor ve and QNB Finans Finansal, you can compare the effects of market volatilities on Turk Traktor 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 Traktor with a short position of QNB Finans. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turk Traktor and QNB Finans.
Diversification Opportunities for Turk Traktor and QNB Finans
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Turk and QNB is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Turk Traktor ve 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 Traktor 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 Traktor ve 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 Traktor i.e., Turk Traktor and QNB Finans go up and down completely randomly.
Pair Corralation between Turk Traktor and QNB Finans
Assuming the 90 days trading horizon Turk Traktor ve is expected to generate 0.43 times more return on investment than QNB Finans. However, Turk Traktor ve is 2.34 times less risky than QNB Finans. It trades about 0.04 of its potential returns per unit of risk. QNB Finans Finansal is currently generating about 0.01 per unit of risk. If you would invest 64,281 in Turk Traktor ve on August 25, 2024 and sell it today you would earn a total of 10,569 from holding Turk Traktor ve or generate 16.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turk Traktor ve vs. QNB Finans Finansal
Performance |
| Timeline |
| Turk Traktor ve |
| QNB Finans Finansal |
Turk Traktor and QNB Finans Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turk Traktor and QNB Finans
The main advantage of trading using opposite Turk Traktor and QNB Finans positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turk Traktor 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 Traktor vs. QNB Finans Finansal | Turk Traktor vs. Pamel Yenilenebilir Elektrik | Turk Traktor vs. Brisa Bridgestone Sabanci | Turk Traktor vs. Dogus Gayrimenkul Yatirim |
| QNB Finans vs. Is Finansal Kiralama | QNB Finans vs. Garanti Faktoring AS | QNB Finans vs. Lider Faktoring AS | QNB Finans vs. Seker Finansal Kiralama |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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