Correlation Between Qnb Finansbank and Derimod Konfeksiyon

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

Diversification Opportunities for Qnb Finansbank and Derimod Konfeksiyon

0.0

Correlation Coefficient

Qnb Finansbank  Derimod Konfeksiyon

Pay attention - limited upside

The 3 months correlation between Qnb and Derimod is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Qnb Finansbank AS and Derimod Konfeksiyon Ayakkabi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Derimod Konfeksiyon 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 Derimod Konfeksiyon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Derimod Konfeksiyon has no effect on the direction of Qnb Finansbank i.e., Qnb Finansbank and Derimod Konfeksiyon go up and down completely randomly.

Pair Corralation between Qnb Finansbank and Derimod Konfeksiyon

If you would invest  28,200  in Qnb Finansbank AS on October 5, 2024 and sell it today you would lose (1,650) from holding Qnb Finansbank AS or give up 5.85% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Qnb Finansbank AS  vs.  Derimod Konfeksiyon Ayakkabi

Qnb Finansbank AS

Risk-Adjusted Performance

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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 inconsistent 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.

Derimod Konfeksiyon

Risk-Adjusted Performance

0 of 100

Good

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

Pair Trading with Qnb Finansbank and Derimod Konfeksiyon

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

The idea behind Qnb Finansbank AS and Derimod Konfeksiyon Ayakkabi 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.