Correlation Between Qnb Finansbank and Flap Kongre

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

Diversification Opportunities for Qnb Finansbank and Flap Kongre

0.34

Correlation Coefficient

Qnb Finansbank  Flap Kongre

Weak diversification

The 3 months correlation between Qnb and Flap is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Qnb Finansbank AS and Flap Kongre Toplanti in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flap Kongre Toplanti 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 Flap Kongre. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flap Kongre Toplanti has no effect on the direction of Qnb Finansbank i.e., Qnb Finansbank and Flap Kongre go up and down completely randomly.

Pair Corralation between Qnb Finansbank and Flap Kongre

Assuming the 90 days trading horizon Qnb Finansbank AS is expected to under-perform the Flap Kongre. But the stock apears to be less risky and, when comparing its historical volatility, Qnb Finansbank AS is 1.72 times less risky than Flap Kongre. The stock trades about -0.07 of its potential returns per unit of risk. The Flap Kongre Toplanti is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest  1,152  in Flap Kongre Toplanti on October 8, 2024 and sell it today you would lose (55.00) from holding Flap Kongre Toplanti or give up 4.77% of portfolio value over 90 days.

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

Qnb Finansbank AS  vs.  Flap Kongre Toplanti

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 uncertain 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.

Flap Kongre Toplanti

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Flap Kongre Toplanti has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Flap Kongre is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Qnb Finansbank and Flap Kongre

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

The idea behind Qnb Finansbank AS and Flap Kongre Toplanti 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.