Correlation Between Tsingtao Brewery and Anadolu Efes
Can any of the company-specific risk be diversified away by investing in both Tsingtao Brewery 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 Tsingtao Brewery and Anadolu Efes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tsingtao Brewery Co and Anadolu Efes Biracilik, you can compare the effects of market volatilities on Tsingtao Brewery 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 Tsingtao Brewery with a short position of Anadolu Efes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tsingtao Brewery and Anadolu Efes.
Diversification Opportunities for Tsingtao Brewery and Anadolu Efes
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Tsingtao and Anadolu is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Tsingtao Brewery Co 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 Tsingtao Brewery 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 Tsingtao Brewery Co 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 Tsingtao Brewery i.e., Tsingtao Brewery and Anadolu Efes go up and down completely randomly.
Pair Corralation between Tsingtao Brewery and Anadolu Efes
Assuming the 90 days horizon Tsingtao Brewery Co is expected to generate 1.58 times more return on investment than Anadolu Efes. However, Tsingtao Brewery is 1.58 times more volatile than Anadolu Efes Biracilik. It trades about 0.06 of its potential returns per unit of risk. Anadolu Efes Biracilik is currently generating about -0.05 per unit of risk. If you would invest 2,786 in Tsingtao Brewery Co on September 3, 2024 and sell it today you would earn a total of 357.00 from holding Tsingtao Brewery Co or generate 12.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tsingtao Brewery Co vs. Anadolu Efes Biracilik
Performance |
| Timeline |
| Tsingtao Brewery |
| Anadolu Efes Biracilik |
Tsingtao Brewery and Anadolu Efes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tsingtao Brewery and Anadolu Efes
The main advantage of trading using opposite Tsingtao Brewery and Anadolu Efes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tsingtao Brewery 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.| Tsingtao Brewery vs. Jiangsu Expressway Co | Tsingtao Brewery vs. Tsingtao Brewery | Tsingtao Brewery vs. TravelSky Technology Ltd | Tsingtao Brewery vs. Air China Ltd |
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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 CEOs Directory module to screen CEOs from public companies around the world.
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