Correlation Between Anadolu Efes and Saray Matbaacilik

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Can any of the company-specific risk be diversified away by investing in both Anadolu Efes and Saray Matbaacilik 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 Saray Matbaacilik 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 Saray Matbaacilik Kagitcilik, you can compare the effects of market volatilities on Anadolu Efes and Saray Matbaacilik 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 Saray Matbaacilik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anadolu Efes and Saray Matbaacilik.

Diversification Opportunities for Anadolu Efes and Saray Matbaacilik

-0.54
  Correlation Coefficient

Excellent diversification

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

Pair Corralation between Anadolu Efes and Saray Matbaacilik

Assuming the 90 days trading horizon Anadolu Efes Biracilik is expected to generate 0.79 times more return on investment than Saray Matbaacilik. However, Anadolu Efes Biracilik is 1.27 times less risky than Saray Matbaacilik. It trades about 0.04 of its potential returns per unit of risk. Saray Matbaacilik Kagitcilik is currently generating about -0.14 per unit of risk. If you would invest  15,691  in Anadolu Efes Biracilik on October 9, 2024 and sell it today you would earn a total of  1,889  from holding Anadolu Efes Biracilik or generate 12.04% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy99.45%
ValuesDaily Returns

Anadolu Efes Biracilik  vs.  Saray Matbaacilik Kagitcilik

 Performance 
       Timeline  
Anadolu Efes Biracilik 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Anadolu Efes Biracilik has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's forward indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.
Saray Matbaacilik 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Saray Matbaacilik Kagitcilik has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Stock's forward indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Anadolu Efes and Saray Matbaacilik Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Anadolu Efes and Saray Matbaacilik

The main advantage of trading using opposite Anadolu Efes and Saray Matbaacilik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anadolu Efes position performs unexpectedly, Saray Matbaacilik 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 Saray Matbaacilik will offset losses from the drop in Saray Matbaacilik's long position.
The idea behind Anadolu Efes Biracilik and Saray Matbaacilik Kagitcilik 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.

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