Correlation Between Yesil Yapi and QNB Finans
Can any of the company-specific risk be diversified away by investing in both Yesil Yapi 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 Yesil Yapi and QNB Finans into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yesil Yapi Endustrisi and QNB Finans Finansal, you can compare the effects of market volatilities on Yesil Yapi 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 Yesil Yapi with a short position of QNB Finans. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yesil Yapi and QNB Finans.
Diversification Opportunities for Yesil Yapi and QNB Finans
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Yesil and QNB is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Yesil Yapi Endustrisi 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 Yesil Yapi 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 Yesil Yapi Endustrisi 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 Yesil Yapi i.e., Yesil Yapi and QNB Finans go up and down completely randomly.
Pair Corralation between Yesil Yapi and QNB Finans
Assuming the 90 days trading horizon Yesil Yapi is expected to generate 7.36 times less return on investment than QNB Finans. But when comparing it to its historical volatility, Yesil Yapi Endustrisi is 8.19 times less risky than QNB Finans. It trades about 0.06 of its potential returns per unit of risk. QNB Finans Finansal is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,172 in QNB Finans Finansal on August 29, 2024 and sell it today you would earn a total of 8,108 from holding QNB Finans Finansal or generate 691.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yesil Yapi Endustrisi vs. QNB Finans Finansal
Performance |
| Timeline |
| Yesil Yapi Endustrisi |
| QNB Finans Finansal |
Yesil Yapi and QNB Finans Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yesil Yapi and QNB Finans
The main advantage of trading using opposite Yesil Yapi and QNB Finans positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yesil Yapi 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.| Yesil Yapi vs. Gentas Genel Metal | Yesil Yapi vs. Cuhadaroglu Metal Sanayi | Yesil Yapi vs. Galatasaray Sportif Sinai | Yesil Yapi vs. Koza Anadolu 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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