Correlation Between Qnb Finansbank and Can2 Termik

Can any of the company-specific risk be diversified away by investing in both Qnb Finansbank and Can2 Termik 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 Can2 Termik 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 Can2 Termik AS, you can compare the effects of market volatilities on Qnb Finansbank and Can2 Termik 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 Can2 Termik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qnb Finansbank and Can2 Termik.

Diversification Opportunities for Qnb Finansbank and Can2 Termik

-0.5

Correlation Coefficient

Qnb Finansbank  Can2 Termik

Very good diversification

The 3 months correlation between Qnb and Can2 is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Qnb Finansbank AS and Can2 Termik AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Can2 Termik AS 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 Can2 Termik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Can2 Termik AS has no effect on the direction of Qnb Finansbank i.e., Qnb Finansbank and Can2 Termik go up and down completely randomly.

Pair Corralation between Qnb Finansbank and Can2 Termik

Assuming the 90 days trading horizon Qnb Finansbank AS is expected to under-perform the Can2 Termik. In addition to that, Qnb Finansbank is 1.06 times more volatile than Can2 Termik AS. It trades about -0.01 of its total potential returns per unit of risk. Can2 Termik AS is currently generating about 0.08 per unit of volatility. If you would invest  171.00  in Can2 Termik AS on October 10, 2024 and sell it today you would earn a total of  6.00  from holding Can2 Termik AS or generate 3.51% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	95.45%
Values	Daily Returns

Qnb Finansbank AS  vs.  Can2 Termik AS

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 weak 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.

Can2 Termik AS

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Can2 Termik AS are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Can2 Termik demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Qnb Finansbank and Can2 Termik

The main advantage of trading using opposite Qnb Finansbank and Can2 Termik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qnb Finansbank position performs unexpectedly, Can2 Termik 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 Can2 Termik will offset losses from the drop in Can2 Termik's long position.

The idea behind Qnb Finansbank AS and Can2 Termik 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.