Correlation Between Citigroup and Marti Gayrimenkul

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

By analyzing existing cross correlation between Citigroup and Marti Gayrimenkul Yatirim, you can compare the effects of market volatilities on Citigroup and Marti Gayrimenkul 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 Marti Gayrimenkul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Marti Gayrimenkul.

Diversification Opportunities for Citigroup and Marti Gayrimenkul

0.71

Correlation Coefficient

Citigroup  Marti Gayrimenkul

Poor diversification

The 3 months correlation between Citigroup and Marti is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Marti Gayrimenkul Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marti Gayrimenkul Yatirim 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 Marti Gayrimenkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marti Gayrimenkul Yatirim has no effect on the direction of Citigroup i.e., Citigroup and Marti Gayrimenkul go up and down completely randomly.

Pair Corralation between Citigroup and Marti Gayrimenkul

Taking into account the 90-day investment horizon Citigroup is expected to generate 0.7 times more return on investment than Marti Gayrimenkul. However, Citigroup is 1.43 times less risky than Marti Gayrimenkul. It trades about 0.12 of its potential returns per unit of risk. Marti Gayrimenkul Yatirim is currently generating about -0.04 per unit of risk. If you would invest  6,313  in Citigroup on October 26, 2024 and sell it today you would earn a total of  1,856  from holding Citigroup or generate 29.4% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	97.62%
Values	Daily Returns

Citigroup  vs.  Marti Gayrimenkul Yatirim

Citigroup

Risk-Adjusted Performance

19 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating fundamental indicators, Citigroup exhibited solid returns over the last few months and may actually be approaching a breakup point.

Marti Gayrimenkul Yatirim

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Marti Gayrimenkul Yatirim are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Marti Gayrimenkul demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Citigroup and Marti Gayrimenkul

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

The idea behind Citigroup and Marti Gayrimenkul Yatirim 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.