Correlation Between Anadolu Efes and Tsingtao Brewery
Can any of the company-specific risk be diversified away by investing in both Anadolu Efes and Tsingtao Brewery 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 Anadolu Efes and Tsingtao Brewery into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anadolu Efes Biracilik and Tsingtao Brewery Co, you can compare the effects of market volatilities on Anadolu Efes and Tsingtao Brewery 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 Anadolu Efes with a short position of Tsingtao Brewery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anadolu Efes and Tsingtao Brewery.
Diversification Opportunities for Anadolu Efes and Tsingtao Brewery
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Anadolu and Tsingtao is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Anadolu Efes Biracilik and Tsingtao Brewery Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tsingtao Brewery and Anadolu Efes 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 Anadolu Efes Biracilik are associated (or correlated) with Tsingtao Brewery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tsingtao Brewery has no effect on the direction of Anadolu Efes i.e., Anadolu Efes and Tsingtao Brewery go up and down completely randomly.
Pair Corralation between Anadolu Efes and Tsingtao Brewery
Assuming the 90 days horizon Anadolu Efes Biracilik is expected to generate 0.82 times more return on investment than Tsingtao Brewery. However, Anadolu Efes Biracilik is 1.21 times less risky than Tsingtao Brewery. It trades about 0.04 of its potential returns per unit of risk. Tsingtao Brewery Co is currently generating about 0.02 per unit of risk. If you would invest 104.00 in Anadolu Efes Biracilik on September 3, 2024 and sell it today you would earn a total of 15.00 from holding Anadolu Efes Biracilik or generate 14.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.59% |
| Values | Daily Returns |
Anadolu Efes Biracilik vs. Tsingtao Brewery Co
Performance |
| Timeline |
| Anadolu Efes Biracilik |
| Tsingtao Brewery |
Anadolu Efes and Tsingtao Brewery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anadolu Efes and Tsingtao Brewery
The main advantage of trading using opposite Anadolu Efes and Tsingtao Brewery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anadolu Efes position performs unexpectedly, Tsingtao Brewery 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 Tsingtao Brewery will offset losses from the drop in Tsingtao Brewery's long position.| Anadolu Efes vs. Compania Cervecerias Unidas | Anadolu Efes vs. Fomento Economico Mexicano | Anadolu Efes vs. Molson Coors Brewing | Anadolu Efes vs. Tsingtao Brewery Co |
| Tsingtao Brewery vs. Jiangsu Expressway Co | Tsingtao Brewery vs. Tsingtao Brewery | Tsingtao Brewery vs. TravelSky Technology Ltd | Tsingtao Brewery vs. Air China Ltd |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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