Correlation Between Besiktas Futbol and QNB Finans

Can any of the company-specific risk be diversified away by investing in both Besiktas Futbol 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 Besiktas Futbol and QNB Finans into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Besiktas Futbol Yatirimlari and QNB Finans Finansal, you can compare the effects of market volatilities on Besiktas Futbol 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 Besiktas Futbol with a short position of QNB Finans. Check out your portfolio center. Please also check ongoing floating volatility patterns of Besiktas Futbol and QNB Finans.

Diversification Opportunities for Besiktas Futbol and QNB Finans

0.91

Correlation Coefficient

Besiktas Futbol  QNB Finans

Almost no diversification

The 3 months correlation between Besiktas and QNB is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Besiktas Futbol Yatirimlari 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 Besiktas Futbol 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 Besiktas Futbol Yatirimlari 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 Besiktas Futbol i.e., Besiktas Futbol and QNB Finans go up and down completely randomly.

Pair Corralation between Besiktas Futbol and QNB Finans

Assuming the 90 days trading horizon Besiktas Futbol Yatirimlari is expected to under-perform the QNB Finans. But the stock apears to be less risky and, when comparing its historical volatility, Besiktas Futbol Yatirimlari is 1.07 times less risky than QNB Finans. The stock trades about -0.25 of its potential returns per unit of risk. The QNB Finans Finansal is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest  11,150  in QNB Finans Finansal on September 12, 2024 and sell it today you would lose (770.00) from holding QNB Finans Finansal or give up 6.91% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Besiktas Futbol Yatirimlari  vs.  QNB Finans Finansal

Besiktas Futbol Yati

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Besiktas Futbol Yatirimlari 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 January 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

QNB Finans Finansal

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days QNB Finans Finansal has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, QNB Finans is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Besiktas Futbol and QNB Finans

The main advantage of trading using opposite Besiktas Futbol and QNB Finans positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Besiktas Futbol 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.

The idea behind Besiktas Futbol Yatirimlari and QNB Finans Finansal 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.