Correlation Between Turkiye Is and Anadolu Efes

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

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

Diversification Opportunities for Turkiye Is and Anadolu Efes

-0.08

Correlation Coefficient

Turkiye Is  Anadolu Efes

Good diversification

The 3 months correlation between Turkiye and Anadolu is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Is Bankasi and Anadolu Efes Biracilik in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anadolu Efes Biracilik and Turkiye Is 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 Turkiye Is Bankasi are associated (or correlated) with Anadolu Efes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anadolu Efes Biracilik has no effect on the direction of Turkiye Is i.e., Turkiye Is and Anadolu Efes go up and down completely randomly.

Pair Corralation between Turkiye Is and Anadolu Efes

Assuming the 90 days trading horizon Turkiye Is Bankasi is expected to under-perform the Anadolu Efes. But the stock apears to be less risky and, when comparing its historical volatility, Turkiye Is Bankasi is 1.38 times less risky than Anadolu Efes. The stock trades about -0.15 of its potential returns per unit of risk. The Anadolu Efes Biracilik is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest  20,150  in Anadolu Efes Biracilik on October 11, 2024 and sell it today you would lose (3,000) from holding Anadolu Efes Biracilik or give up 14.89% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	97.67%
Values	Daily Returns

Turkiye Is Bankasi  vs.  Anadolu Efes Biracilik

Turkiye Is Bankasi

Risk-Adjusted Performance

1 of 100

Weak

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

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. 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.

Pair Trading with Turkiye Is and Anadolu Efes

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

The idea behind Turkiye Is Bankasi and Anadolu Efes Biracilik 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.