Correlation Between Anadolu Efes and AP Moeller

Can any of the company-specific risk be diversified away by investing in both Anadolu Efes and AP Moeller 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 AP Moeller 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 AP Moeller , you can compare the effects of market volatilities on Anadolu Efes and AP Moeller 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 AP Moeller. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anadolu Efes and AP Moeller.

Diversification Opportunities for Anadolu Efes and AP Moeller

0.43

Correlation Coefficient

Anadolu Efes  AP Moeller

Very weak diversification

The 3 months correlation between Anadolu and AMKAF is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Anadolu Efes Biracilik and AP Moeller in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AP Moeller 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 AP Moeller. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AP Moeller has no effect on the direction of Anadolu Efes i.e., Anadolu Efes and AP Moeller go up and down completely randomly.

Pair Corralation between Anadolu Efes and AP Moeller

Assuming the 90 days horizon Anadolu Efes Biracilik is expected to generate 0.92 times more return on investment than AP Moeller. However, Anadolu Efes Biracilik is 1.08 times less risky than AP Moeller. It trades about 0.17 of its potential returns per unit of risk. AP Moeller is currently generating about 0.02 per unit of risk. If you would invest  124.00  in Anadolu Efes Biracilik on September 26, 2024 and sell it today you would earn a total of  12.00  from holding Anadolu Efes Biracilik or generate 9.68% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Anadolu Efes Biracilik  vs.  AP Moeller

Anadolu Efes Biracilik

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Anadolu Efes Biracilik are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile basic indicators, Anadolu Efes showed solid returns over the last few months and may actually be approaching a breakup point.

AP Moeller

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days AP Moeller has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, AP Moeller is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Anadolu Efes and AP Moeller

The main advantage of trading using opposite Anadolu Efes and AP Moeller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anadolu Efes position performs unexpectedly, AP Moeller 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 AP Moeller will offset losses from the drop in AP Moeller's long position.

The idea behind Anadolu Efes Biracilik and AP Moeller pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..