Correlation Between Beyaz Filo and Qnb Finansbank

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Can any of the company-specific risk be diversified away by investing in both Beyaz Filo 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 Beyaz Filo and Qnb Finansbank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Beyaz Filo Oto and Qnb Finansbank AS, you can compare the effects of market volatilities on Beyaz Filo 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 Beyaz Filo with a short position of Qnb Finansbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beyaz Filo and Qnb Finansbank.

Diversification Opportunities for Beyaz Filo and Qnb Finansbank

-0.58
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Beyaz and Qnb is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Beyaz Filo Oto 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 Beyaz Filo 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 Beyaz Filo Oto 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 Beyaz Filo i.e., Beyaz Filo and Qnb Finansbank go up and down completely randomly.

Pair Corralation between Beyaz Filo and Qnb Finansbank

Assuming the 90 days trading horizon Beyaz Filo Oto is expected to under-perform the Qnb Finansbank. But the stock apears to be less risky and, when comparing its historical volatility, Beyaz Filo Oto is 1.61 times less risky than Qnb Finansbank. The stock trades about -0.13 of its potential returns per unit of risk. The Qnb Finansbank AS is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  26,950  in Qnb Finansbank AS on December 27, 2024 and sell it today you would earn a total of  8,050  from holding Qnb Finansbank AS or generate 29.87% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Beyaz Filo Oto  vs.  Qnb Finansbank AS

 Performance 
       Timeline  
Beyaz Filo Oto 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Beyaz Filo Oto has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.
Qnb Finansbank AS 

Risk-Adjusted Performance

OK

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Qnb Finansbank AS are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Qnb Finansbank demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Beyaz Filo and Qnb Finansbank Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Beyaz Filo and Qnb Finansbank

The main advantage of trading using opposite Beyaz Filo and Qnb Finansbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beyaz Filo 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.
The idea behind Beyaz Filo Oto and Qnb Finansbank AS pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.

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