Correlation Between Anadolu Efes and AP Moeller

Can any of the company-specific risk be diversified away by investing in both Anadolu Efes and AP Moeller 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 Anadolu Efes and AP Moeller into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Anadolu Efes Biracilik and AP Moeller , you can compare the effects of market volatilities on Anadolu Efes and AP Moeller 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 Anadolu Efes with a short position of AP Moeller. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anadolu Efes and AP Moeller.

Diversification Opportunities for Anadolu Efes and AP Moeller

0.35

Correlation Coefficient

Anadolu Efes  AP Moeller

Weak diversification

The 3 months correlation between Anadolu and AMKAF is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Anadolu Efes Biracilik and AP Moeller in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AP Moeller and Anadolu Efes 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 Anadolu Efes Biracilik are associated (or correlated) with AP Moeller. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AP Moeller has no effect on the direction of Anadolu Efes i.e., Anadolu Efes and AP Moeller go up and down completely randomly.

Pair Corralation between Anadolu Efes and AP Moeller

Assuming the 90 days horizon Anadolu Efes Biracilik is expected to under-perform the AP Moeller. In addition to that, Anadolu Efes is 1.19 times more volatile than AP Moeller . It trades about -0.3 of its total potential returns per unit of risk. AP Moeller is currently generating about -0.02 per unit of volatility. If you would invest  157,000  in AP Moeller on October 14, 2024 and sell it today you would lose (4,300) from holding AP Moeller or give up 2.74% of portfolio value over 90 days.

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

Anadolu Efes Biracilik  vs.  AP Moeller

Anadolu Efes Biracilik

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Anadolu Efes Biracilik has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

AP Moeller

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in AP Moeller are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, AP Moeller may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Anadolu Efes and AP Moeller

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

The idea behind Anadolu Efes Biracilik and AP Moeller 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.