Correlation Between Celik Halat and Qnb Finansbank

Can any of the company-specific risk be diversified away by investing in both Celik Halat 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 Celik Halat and Qnb Finansbank into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Celik Halat ve and Qnb Finansbank AS, you can compare the effects of market volatilities on Celik Halat 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 Celik Halat with a short position of Qnb Finansbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celik Halat and Qnb Finansbank.

Diversification Opportunities for Celik Halat and Qnb Finansbank

0.74

Correlation Coefficient

Celik Halat  Qnb Finansbank

Poor diversification

The 3 months correlation between Celik and Qnb is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Celik Halat ve 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 Celik Halat 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 Celik Halat ve 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 Celik Halat i.e., Celik Halat and Qnb Finansbank go up and down completely randomly.

Pair Corralation between Celik Halat and Qnb Finansbank

Assuming the 90 days trading horizon Celik Halat ve is expected to under-perform the Qnb Finansbank. In addition to that, Celik Halat is 1.01 times more volatile than Qnb Finansbank AS. It trades about -0.13 of its total potential returns per unit of risk. Qnb Finansbank AS is currently generating about -0.06 per unit of volatility. If you would invest  29,700  in Qnb Finansbank AS on October 11, 2024 and sell it today you would lose (2,700) from holding Qnb Finansbank AS or give up 9.09% of portfolio value over 90 days.

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

Celik Halat ve  vs.  Qnb Finansbank AS

Celik Halat ve

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Celik Halat ve 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 February 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Qnb Finansbank AS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Qnb Finansbank AS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Stock's forward indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with Celik Halat and Qnb Finansbank

The main advantage of trading using opposite Celik Halat and Qnb Finansbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celik Halat 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 Celik Halat ve 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.