Correlation Between CarrefourSA Carrefour and Anadolu Efes
Can any of the company-specific risk be diversified away by investing in both CarrefourSA Carrefour 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 CarrefourSA Carrefour and Anadolu Efes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CarrefourSA Carrefour Sabanci and Anadolu Efes Biracilik, you can compare the effects of market volatilities on CarrefourSA Carrefour 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 CarrefourSA Carrefour with a short position of Anadolu Efes. Check out your portfolio center. Please also check ongoing floating volatility patterns of CarrefourSA Carrefour and Anadolu Efes.
Diversification Opportunities for CarrefourSA Carrefour and Anadolu Efes
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CarrefourSA and Anadolu is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding CarrefourSA Carrefour Sabanci 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 CarrefourSA Carrefour 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 CarrefourSA Carrefour Sabanci 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 CarrefourSA Carrefour i.e., CarrefourSA Carrefour and Anadolu Efes go up and down completely randomly.
Pair Corralation between CarrefourSA Carrefour and Anadolu Efes
Assuming the 90 days trading horizon CarrefourSA Carrefour is expected to generate 1.84 times less return on investment than Anadolu Efes. In addition to that, CarrefourSA Carrefour is 1.28 times more volatile than Anadolu Efes Biracilik. It trades about 0.04 of its total potential returns per unit of risk. Anadolu Efes Biracilik is currently generating about 0.1 per unit of volatility. If you would invest 6,016 in Anadolu Efes Biracilik on August 24, 2024 and sell it today you would earn a total of 15,184 from holding Anadolu Efes Biracilik or generate 252.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CarrefourSA Carrefour Sabanci vs. Anadolu Efes Biracilik
Performance |
| Timeline |
| CarrefourSA Carrefour |
| Anadolu Efes Biracilik |
CarrefourSA Carrefour and Anadolu Efes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CarrefourSA Carrefour and Anadolu Efes
The main advantage of trading using opposite CarrefourSA Carrefour and Anadolu Efes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CarrefourSA Carrefour 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.| CarrefourSA Carrefour vs. Bms Birlesik Metal | CarrefourSA Carrefour vs. Sekerbank TAS | CarrefourSA Carrefour vs. Gentas Genel Metal | CarrefourSA Carrefour vs. E Data Teknoloji Pazarlama |
| Anadolu Efes vs. Turkiye Sise ve | Anadolu Efes vs. Koc Holding AS | Anadolu Efes vs. Coca Cola Icecek AS | Anadolu Efes vs. Haci Omer Sabanci |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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