Correlation Between MQGAU and Anadolu Efes

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

By analyzing existing cross correlation between MQGAU 5376057 23 SEP 27 and Anadolu Efes Biracilik, you can compare the effects of market volatilities on MQGAU 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 MQGAU with a short position of Anadolu Efes. Check out your portfolio center. Please also check ongoing floating volatility patterns of MQGAU and Anadolu Efes.

Diversification Opportunities for MQGAU and Anadolu Efes

-0.62

Correlation Coefficient

MQGAU  Anadolu Efes

Excellent diversification

The 3 months correlation between MQGAU and Anadolu is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding MQGAU 5376057 23 SEP 27 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 MQGAU 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 MQGAU 5376057 23 SEP 27 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 MQGAU i.e., MQGAU and Anadolu Efes go up and down completely randomly.

Pair Corralation between MQGAU and Anadolu Efes

Assuming the 90 days trading horizon MQGAU 5376057 23 SEP 27 is expected to generate 0.01 times more return on investment than Anadolu Efes. However, MQGAU 5376057 23 SEP 27 is 94.11 times less risky than Anadolu Efes. It trades about -0.05 of its potential returns per unit of risk. Anadolu Efes Biracilik is currently generating about -0.1 per unit of risk. If you would invest  10,047  in MQGAU 5376057 23 SEP 27 on December 29, 2024 and sell it today you would lose (3.00) from holding MQGAU 5376057 23 SEP 27 or give up 0.03% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	21.31%
Values	Daily Returns

MQGAU 5376057 23 SEP 27  vs.  Anadolu Efes Biracilik

MQGAU 5376057 23

Risk-Adjusted Performance

Very Weak

Over the last 90 days MQGAU 5376057 23 SEP 27 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, MQGAU is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

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 MQGAU and Anadolu Efes

The main advantage of trading using opposite MQGAU and Anadolu Efes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MQGAU 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 MQGAU 5376057 23 SEP 27 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.