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

Turkiye Garanti  Anadolu Efes

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

Turkiye Garanti Bankasi

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Turkiye Garanti Bankasi are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak fundamental drivers, Turkiye Garanti may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Anadolu Efes Biracilik

Risk-Adjusted Performance

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 uncertain performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

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.

The idea behind Turkiye Garanti 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.