Correlation Between Qnb Finansbank and SASA Polyester

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

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

Diversification Opportunities for Qnb Finansbank and SASA Polyester

0.82

Correlation Coefficient

Qnb Finansbank  SASA Polyester

Very poor diversification

The 3 months correlation between Qnb and SASA is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Qnb Finansbank AS and SASA Polyester Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SASA Polyester Sanayi and Qnb Finansbank 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 Qnb Finansbank AS are associated (or correlated) with SASA Polyester. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SASA Polyester Sanayi has no effect on the direction of Qnb Finansbank i.e., Qnb Finansbank and SASA Polyester go up and down completely randomly.

Pair Corralation between Qnb Finansbank and SASA Polyester

Assuming the 90 days trading horizon Qnb Finansbank AS is expected to under-perform the SASA Polyester. In addition to that, Qnb Finansbank is 1.1 times more volatile than SASA Polyester Sanayi. It trades about -0.12 of its total potential returns per unit of risk. SASA Polyester Sanayi is currently generating about -0.12 per unit of volatility. If you would invest  498.00  in SASA Polyester Sanayi on September 1, 2024 and sell it today you would lose (93.00) from holding SASA Polyester Sanayi or give up 18.67% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.46%
Values	Daily Returns

Qnb Finansbank AS  vs.  SASA Polyester Sanayi

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 inconsistent performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in December 2024. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

SASA Polyester Sanayi

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SASA Polyester Sanayi has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in December 2024. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Qnb Finansbank and SASA Polyester

The main advantage of trading using opposite Qnb Finansbank and SASA Polyester positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qnb Finansbank position performs unexpectedly, SASA Polyester 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 SASA Polyester will offset losses from the drop in SASA Polyester's long position.

The idea behind Qnb Finansbank AS and SASA Polyester Sanayi 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.

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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.