Correlation Between Koc Holdings and Anadolu Efes
Can any of the company-specific risk be diversified away by investing in both Koc Holdings 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 Koc Holdings and Anadolu Efes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Koc Holdings AS and Anadolu Efes Biracilik, you can compare the effects of market volatilities on Koc Holdings 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 Koc Holdings with a short position of Anadolu Efes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koc Holdings and Anadolu Efes.
Diversification Opportunities for Koc Holdings and Anadolu Efes
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Koc and Anadolu is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Koc Holdings AS 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 Koc Holdings 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 Koc Holdings AS 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 Koc Holdings i.e., Koc Holdings and Anadolu Efes go up and down completely randomly.
Pair Corralation between Koc Holdings and Anadolu Efes
Assuming the 90 days horizon Koc Holdings AS is expected to generate 0.84 times more return on investment than Anadolu Efes. However, Koc Holdings AS is 1.19 times less risky than Anadolu Efes. It trades about 0.34 of its potential returns per unit of risk. Anadolu Efes Biracilik is currently generating about 0.08 per unit of risk. If you would invest 2,398 in Koc Holdings AS on September 1, 2024 and sell it today you would earn a total of 592.00 from holding Koc Holdings AS or generate 24.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Koc Holdings AS vs. Anadolu Efes Biracilik
Performance |
| Timeline |
| Koc Holdings AS |
| Anadolu Efes Biracilik |
Koc Holdings and Anadolu Efes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koc Holdings and Anadolu Efes
The main advantage of trading using opposite Koc Holdings and Anadolu Efes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koc Holdings 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.| Koc Holdings vs. Akbank Turk Anonim | Koc Holdings vs. Turkiye Garanti Bankasi | Koc Holdings vs. Astra International Tbk | Koc Holdings vs. Bank Mandiri Persero |
| 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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