Correlation Between Akbank Turk and Anadolu Efes
Can any of the company-specific risk be diversified away by investing in both Akbank Turk 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 Akbank Turk and Anadolu Efes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akbank Turk Anonim and Anadolu Efes Biracilik, you can compare the effects of market volatilities on Akbank Turk 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 Akbank Turk with a short position of Anadolu Efes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akbank Turk and Anadolu Efes.
Diversification Opportunities for Akbank Turk and Anadolu Efes
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Akbank and Anadolu is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Akbank Turk Anonim 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 Akbank Turk 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 Akbank Turk Anonim 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 Akbank Turk i.e., Akbank Turk and Anadolu Efes go up and down completely randomly.
Pair Corralation between Akbank Turk and Anadolu Efes
Assuming the 90 days horizon Akbank Turk is expected to generate 1.02 times less return on investment than Anadolu Efes. In addition to that, Akbank Turk is 1.11 times more volatile than Anadolu Efes Biracilik. It trades about 0.07 of its total potential returns per unit of risk. Anadolu Efes Biracilik is currently generating about 0.08 per unit of volatility. If you would invest 56.00 in Anadolu Efes Biracilik on September 1, 2024 and sell it today you would earn a total of 63.00 from holding Anadolu Efes Biracilik or generate 112.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 88.25% |
| Values | Daily Returns |
Akbank Turk Anonim vs. Anadolu Efes Biracilik
Performance |
| Timeline |
| Akbank Turk Anonim |
| Anadolu Efes Biracilik |
Akbank Turk and Anadolu Efes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akbank Turk and Anadolu Efes
The main advantage of trading using opposite Akbank Turk and Anadolu Efes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akbank Turk 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.| Akbank Turk vs. Commercial International Bank | Akbank Turk vs. Kasikornbank Public Co | Akbank Turk vs. PT Bank Central | Akbank Turk vs. PT Bank Rakyat |
| 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |