Correlation Between Qnb Finansbank and Atlas Menkul

Can any of the company-specific risk be diversified away by investing in both Qnb Finansbank and Atlas Menkul 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 Atlas Menkul 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 Atlas Menkul Kiymetler, you can compare the effects of market volatilities on Qnb Finansbank and Atlas Menkul 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 Atlas Menkul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qnb Finansbank and Atlas Menkul.

Diversification Opportunities for Qnb Finansbank and Atlas Menkul

-0.52

Correlation Coefficient

Qnb Finansbank  Atlas Menkul

Excellent diversification

The 3 months correlation between Qnb and Atlas is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Qnb Finansbank AS and Atlas Menkul Kiymetler in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlas Menkul Kiymetler 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 Atlas Menkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlas Menkul Kiymetler has no effect on the direction of Qnb Finansbank i.e., Qnb Finansbank and Atlas Menkul go up and down completely randomly.

Pair Corralation between Qnb Finansbank and Atlas Menkul

Assuming the 90 days trading horizon Qnb Finansbank AS is expected to under-perform the Atlas Menkul. But the stock apears to be less risky and, when comparing its historical volatility, Qnb Finansbank AS is 1.22 times less risky than Atlas Menkul. The stock trades about -0.04 of its potential returns per unit of risk. The Atlas Menkul Kiymetler is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  534.00  in Atlas Menkul Kiymetler on October 25, 2024 and sell it today you would earn a total of  69.00  from holding Atlas Menkul Kiymetler or generate 12.92% return on investment over 90 days.

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

Qnb Finansbank AS  vs.  Atlas Menkul Kiymetler

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 fairly strong forward indicators, Qnb Finansbank is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

Atlas Menkul Kiymetler

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Atlas Menkul Kiymetler are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Atlas Menkul demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Qnb Finansbank and Atlas Menkul

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

The idea behind Qnb Finansbank AS and Atlas Menkul Kiymetler 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.