Correlation Between Qnb Finansbank and Yukselen Celik

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

Diversification Opportunities for Qnb Finansbank and Yukselen Celik

-0.18

Correlation Coefficient

Qnb Finansbank  Yukselen Celik

Good diversification

The 3 months correlation between Qnb and Yukselen is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Qnb Finansbank AS and Yukselen Celik As in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yukselen Celik 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 Yukselen Celik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yukselen Celik As has no effect on the direction of Qnb Finansbank i.e., Qnb Finansbank and Yukselen Celik go up and down completely randomly.

Pair Corralation between Qnb Finansbank and Yukselen Celik

Assuming the 90 days trading horizon Qnb Finansbank is expected to generate 1.53 times less return on investment than Yukselen Celik. In addition to that, Qnb Finansbank is 1.25 times more volatile than Yukselen Celik As. It trades about 0.05 of its total potential returns per unit of risk. Yukselen Celik As is currently generating about 0.09 per unit of volatility. If you would invest  740.00  in Yukselen Celik As on October 26, 2024 and sell it today you would earn a total of  26.00  from holding Yukselen Celik As or generate 3.51% 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.  Yukselen Celik 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 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.

Yukselen Celik As

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Yukselen Celik As are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward indicators, Yukselen Celik is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Qnb Finansbank and Yukselen Celik

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

The idea behind Qnb Finansbank AS and Yukselen Celik 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.