Correlation Between Yapi Ve and Anadolu Efes

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

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

Diversification Opportunities for Yapi Ve and Anadolu Efes

-0.03

Correlation Coefficient

Yapi Ve  Anadolu Efes

Good diversification

The 3 months correlation between Yapi and Anadolu is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Yapi ve Kredi 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 Yapi Ve 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 Yapi ve Kredi 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 Yapi Ve i.e., Yapi Ve and Anadolu Efes go up and down completely randomly.

Pair Corralation between Yapi Ve and Anadolu Efes

Assuming the 90 days trading horizon Yapi ve Kredi is expected to generate 0.72 times more return on investment than Anadolu Efes. However, Yapi ve Kredi is 1.39 times less risky than Anadolu Efes. It trades about 0.19 of its potential returns per unit of risk. Anadolu Efes Biracilik is currently generating about -0.06 per unit of risk. If you would invest  2,476  in Yapi ve Kredi on October 26, 2024 and sell it today you would earn a total of  824.00  from holding Yapi ve Kredi or generate 33.28% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Yapi ve Kredi  vs.  Anadolu Efes Biracilik

Yapi ve Kredi

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Yapi ve Kredi are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Yapi Ve demonstrated solid returns over the last few months and may actually be approaching a breakup point.

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 uncertain performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in February 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Yapi Ve and Anadolu Efes

The main advantage of trading using opposite Yapi Ve and Anadolu Efes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yapi Ve 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 Yapi ve Kredi 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.