Correlation Between Qnb Finansbank and Yesil Yapi

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

Diversification Opportunities for Qnb Finansbank and Yesil Yapi

0.54

Correlation Coefficient

Qnb Finansbank  Yesil Yapi

Very weak diversification

The 3 months correlation between Qnb and Yesil is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Qnb Finansbank AS and Yesil Yapi Endustrisi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yesil Yapi Endustrisi 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 Yesil Yapi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yesil Yapi Endustrisi has no effect on the direction of Qnb Finansbank i.e., Qnb Finansbank and Yesil Yapi go up and down completely randomly.

Pair Corralation between Qnb Finansbank and Yesil Yapi

Assuming the 90 days trading horizon Qnb Finansbank AS is expected to generate 0.71 times more return on investment than Yesil Yapi. However, Qnb Finansbank AS is 1.42 times less risky than Yesil Yapi. It trades about 0.22 of its potential returns per unit of risk. Yesil Yapi Endustrisi is currently generating about 0.13 per unit of risk. If you would invest  28,500  in Qnb Finansbank AS on April 25, 2025 and sell it today you would earn a total of  11,500  from holding Qnb Finansbank AS or generate 40.35% return on investment over 90 days.

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

Qnb Finansbank AS  vs.  Yesil Yapi Endustrisi

Qnb Finansbank AS

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Qnb Finansbank AS are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Qnb Finansbank demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Yesil Yapi Endustrisi

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Yesil Yapi Endustrisi are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Yesil Yapi demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Qnb Finansbank and Yesil Yapi

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

The idea behind Qnb Finansbank AS and Yesil Yapi Endustrisi 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.

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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.