Correlation Between Citigroup and Derimod Konfeksiyon

Can any of the company-specific risk be diversified away by investing in both Citigroup and Derimod Konfeksiyon 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 Citigroup and Derimod Konfeksiyon into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Citigroup and Derimod Konfeksiyon Ayakkabi, you can compare the effects of market volatilities on Citigroup and Derimod Konfeksiyon 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 Citigroup with a short position of Derimod Konfeksiyon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Derimod Konfeksiyon.

Diversification Opportunities for Citigroup and Derimod Konfeksiyon

0.23

Correlation Coefficient

Citigroup  Derimod Konfeksiyon

Modest diversification

The 3 months correlation between Citigroup and Derimod is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Derimod Konfeksiyon Ayakkabi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Derimod Konfeksiyon and Citigroup 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 Citigroup are associated (or correlated) with Derimod Konfeksiyon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Derimod Konfeksiyon has no effect on the direction of Citigroup i.e., Citigroup and Derimod Konfeksiyon go up and down completely randomly.

Pair Corralation between Citigroup and Derimod Konfeksiyon

Taking into account the 90-day investment horizon Citigroup is expected to under-perform the Derimod Konfeksiyon. But the stock apears to be less risky and, when comparing its historical volatility, Citigroup is 3.03 times less risky than Derimod Konfeksiyon. The stock trades about -0.03 of its potential returns per unit of risk. The Derimod Konfeksiyon Ayakkabi is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  3,196  in Derimod Konfeksiyon Ayakkabi on September 23, 2024 and sell it today you would earn a total of  158.00  from holding Derimod Konfeksiyon Ayakkabi or generate 4.94% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	95.45%
Values	Daily Returns

Citigroup  vs.  Derimod Konfeksiyon Ayakkabi

Citigroup

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain fundamental indicators, Citigroup may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Derimod Konfeksiyon

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Derimod Konfeksiyon Ayakkabi has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Derimod Konfeksiyon is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Citigroup and Derimod Konfeksiyon

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

The idea behind Citigroup and Derimod Konfeksiyon Ayakkabi 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.