Correlation Between Is Gayrimenkul and Qnb Finansbank

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

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

Diversification Opportunities for Is Gayrimenkul and Qnb Finansbank

-0.38

Correlation Coefficient

Is Gayrimenkul  Qnb Finansbank

Very good diversification

The 3 months correlation between ISGYO and Qnb is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Is Gayrimenkul Yatirim 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 Is Gayrimenkul 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 Is Gayrimenkul Yatirim 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 Is Gayrimenkul i.e., Is Gayrimenkul and Qnb Finansbank go up and down completely randomly.

Pair Corralation between Is Gayrimenkul and Qnb Finansbank

Assuming the 90 days trading horizon Is Gayrimenkul Yatirim is expected to under-perform the Qnb Finansbank. But the stock apears to be less risky and, when comparing its historical volatility, Is Gayrimenkul Yatirim is 1.5 times less risky than Qnb Finansbank. The stock trades about 0.0 of its potential returns per unit of risk. The Qnb Finansbank AS is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  27,625  in Qnb Finansbank AS on September 23, 2024 and sell it today you would lose (525.00) from holding Qnb Finansbank AS or give up 1.9% of portfolio value over 90 days.

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

Is Gayrimenkul Yatirim  vs.  Qnb Finansbank AS

Is Gayrimenkul Yatirim

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Is Gayrimenkul Yatirim are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Is Gayrimenkul may actually be approaching a critical reversion point that can send shares even higher in January 2025.

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 uncertain 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 Is Gayrimenkul and Qnb Finansbank

The main advantage of trading using opposite Is Gayrimenkul and Qnb Finansbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Is Gayrimenkul 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 Is Gayrimenkul Yatirim 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.