Correlation Between Turkiye Garanti and Anadolu Efes
Can any of the company-specific risk be diversified away by investing in both Turkiye Garanti 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 Garanti 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 Garanti Bankasi and Anadolu Efes Biracilik, you can compare the effects of market volatilities on Turkiye Garanti 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 Garanti with a short position of Anadolu Efes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Garanti and Anadolu Efes.
Diversification Opportunities for Turkiye Garanti and Anadolu Efes
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Turkiye and Anadolu is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Garanti 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 Garanti 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 Garanti 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 Garanti i.e., Turkiye Garanti and Anadolu Efes go up and down completely randomly.
Pair Corralation between Turkiye Garanti and Anadolu Efes
Assuming the 90 days horizon Turkiye Garanti Bankasi is expected to generate 0.8 times more return on investment than Anadolu Efes. However, Turkiye Garanti Bankasi is 1.25 times less risky than Anadolu Efes. It trades about 0.04 of its potential returns per unit of risk. Anadolu Efes Biracilik is currently generating about -0.14 per unit of risk. If you would invest 356.00 in Turkiye Garanti Bankasi on December 3, 2024 and sell it today you would earn a total of 13.00 from holding Turkiye Garanti Bankasi or generate 3.65% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.36% |
Values | Daily Returns |
Turkiye Garanti Bankasi vs. Anadolu Efes Biracilik
Performance |
Timeline |
Turkiye Garanti Bankasi |
Anadolu Efes Biracilik |
Turkiye Garanti and Anadolu Efes Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Turkiye Garanti and Anadolu Efes
The main advantage of trading using opposite Turkiye Garanti and Anadolu Efes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Garanti 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.Turkiye Garanti vs. Kasikornbank Public Co | Turkiye Garanti vs. Hang Seng Bank | Turkiye Garanti vs. PT Bank Rakyat | Turkiye Garanti vs. Delhi Bank Corp |
Anadolu Efes vs. Compania Cervecerias Unidas | Anadolu Efes vs. Fomento Economico Mexicano | Anadolu Efes vs. Molson Coors Brewing | Anadolu Efes vs. Tsingtao Brewery Co |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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