Correlation Between Qnb Finansbank and Turcas Petrol
Can any of the company-specific risk be diversified away by investing in both Qnb Finansbank and Turcas Petrol 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 Turcas Petrol 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 Turcas Petrol AS, you can compare the effects of market volatilities on Qnb Finansbank and Turcas Petrol 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 Turcas Petrol. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qnb Finansbank and Turcas Petrol.
Diversification Opportunities for Qnb Finansbank and Turcas Petrol
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Qnb and Turcas is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Qnb Finansbank AS and Turcas Petrol AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turcas Petrol 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 Turcas Petrol. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turcas Petrol AS has no effect on the direction of Qnb Finansbank i.e., Qnb Finansbank and Turcas Petrol go up and down completely randomly.
Pair Corralation between Qnb Finansbank and Turcas Petrol
Assuming the 90 days trading horizon Qnb Finansbank AS is expected to generate 1.39 times more return on investment than Turcas Petrol. However, Qnb Finansbank is 1.39 times more volatile than Turcas Petrol AS. It trades about 0.1 of its potential returns per unit of risk. Turcas Petrol AS is currently generating about 0.03 per unit of risk. If you would invest 4,898 in Qnb Finansbank AS on September 25, 2024 and sell it today you would earn a total of 21,602 from holding Qnb Finansbank AS or generate 441.04% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Qnb Finansbank AS vs. Turcas Petrol AS
Performance |
Timeline |
Qnb Finansbank AS |
Turcas Petrol AS |
Qnb Finansbank and Turcas Petrol Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Qnb Finansbank and Turcas Petrol
The main advantage of trading using opposite Qnb Finansbank and Turcas Petrol positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qnb Finansbank position performs unexpectedly, Turcas Petrol 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 Turcas Petrol will offset losses from the drop in Turcas Petrol's long position.Qnb Finansbank vs. SASA Polyester Sanayi | Qnb Finansbank vs. Turkish Airlines | Qnb Finansbank vs. Koc Holding AS | Qnb Finansbank vs. Ford Otomotiv Sanayi |
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Check out your portfolio center.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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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