Correlation Between QNB Finans and Kordsa Global

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

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

Diversification Opportunities for QNB Finans and Kordsa Global

0.14

Correlation Coefficient

QNB Finans  Kordsa Global

Average diversification

The 3 months correlation between QNB and Kordsa is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding QNB Finans Finansal and Kordsa Global Endustriyel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kordsa Global Endustriyel and QNB Finans 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 Finans Finansal are associated (or correlated) with Kordsa Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kordsa Global Endustriyel has no effect on the direction of QNB Finans i.e., QNB Finans and Kordsa Global go up and down completely randomly.

Pair Corralation between QNB Finans and Kordsa Global

Assuming the 90 days trading horizon QNB Finans Finansal is expected to under-perform the Kordsa Global. In addition to that, QNB Finans is 3.72 times more volatile than Kordsa Global Endustriyel. It trades about -0.15 of its total potential returns per unit of risk. Kordsa Global Endustriyel is currently generating about 0.0 per unit of volatility. If you would invest  7,465  in Kordsa Global Endustriyel on September 14, 2024 and sell it today you would lose (105.00) from holding Kordsa Global Endustriyel or give up 1.41% of portfolio value over 90 days.

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

QNB Finans Finansal  vs.  Kordsa Global Endustriyel

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 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.

Kordsa Global Endustriyel

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with QNB Finans and Kordsa Global

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

The idea behind QNB Finans Finansal and Kordsa Global Endustriyel 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.