Correlation Between QNB Finans and Akmerkez Gayrimenkul

Can any of the company-specific risk be diversified away by investing in both QNB Finans and Akmerkez Gayrimenkul 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 Finans and Akmerkez Gayrimenkul into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between QNB Finans Finansal and Akmerkez Gayrimenkul Yatirim, you can compare the effects of market volatilities on QNB Finans and Akmerkez Gayrimenkul 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 Finans with a short position of Akmerkez Gayrimenkul. Check out your portfolio center. Please also check ongoing floating volatility patterns of QNB Finans and Akmerkez Gayrimenkul.

Diversification Opportunities for QNB Finans and Akmerkez Gayrimenkul

-0.19

Correlation Coefficient

QNB Finans  Akmerkez Gayrimenkul

Good diversification

The 3 months correlation between QNB and Akmerkez is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding QNB Finans Finansal and Akmerkez Gayrimenkul Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akmerkez Gayrimenkul and QNB Finans 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 Finans Finansal are associated (or correlated) with Akmerkez Gayrimenkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akmerkez Gayrimenkul has no effect on the direction of QNB Finans i.e., QNB Finans and Akmerkez Gayrimenkul go up and down completely randomly.

Pair Corralation between QNB Finans and Akmerkez Gayrimenkul

Assuming the 90 days trading horizon QNB Finans Finansal is expected to under-perform the Akmerkez Gayrimenkul. But the stock apears to be less risky and, when comparing its historical volatility, QNB Finans Finansal is 1.11 times less risky than Akmerkez Gayrimenkul. The stock trades about -0.15 of its potential returns per unit of risk. The Akmerkez Gayrimenkul Yatirim is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  27,524  in Akmerkez Gayrimenkul Yatirim on March 14, 2024 and sell it today you would earn a total of  1,126  from holding Akmerkez Gayrimenkul Yatirim or generate 4.09% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

QNB Finans Finansal  vs.  Akmerkez Gayrimenkul Yatirim

QNB Finans Finansal

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days QNB Finans Finansal has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's essential indicators remain fairly strong which may send shares a bit higher in July 2024. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Akmerkez Gayrimenkul

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Akmerkez Gayrimenkul Yatirim are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent basic indicators, Akmerkez Gayrimenkul may actually be approaching a critical reversion point that can send shares even higher in July 2024.

Pair Trading with QNB Finans and Akmerkez Gayrimenkul

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

The idea behind QNB Finans Finansal and Akmerkez Gayrimenkul Yatirim 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.