Correlation Between Citigroup and Senkron Guvenlik

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

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

Diversification Opportunities for Citigroup and Senkron Guvenlik

-0.22

Correlation Coefficient

Citigroup  Senkron Guvenlik

Very good diversification

The 3 months correlation between Citigroup and Senkron is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Senkron Guvenlik ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Senkron Guvenlik 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 Senkron Guvenlik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Senkron Guvenlik has no effect on the direction of Citigroup i.e., Citigroup and Senkron Guvenlik go up and down completely randomly.

Pair Corralation between Citigroup and Senkron Guvenlik

Taking into account the 90-day investment horizon Citigroup is expected to generate 1.29 times less return on investment than Senkron Guvenlik. But when comparing it to its historical volatility, Citigroup is 3.03 times less risky than Senkron Guvenlik. It trades about 0.11 of its potential returns per unit of risk. Senkron Guvenlik ve is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  3,670  in Senkron Guvenlik ve on September 23, 2024 and sell it today you would earn a total of  1,400  from holding Senkron Guvenlik ve or generate 38.15% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	99.26%
Values	Daily Returns

Citigroup  vs.  Senkron Guvenlik ve

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 unsteady fundamental indicators, Citigroup may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Senkron Guvenlik

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Senkron Guvenlik ve has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Stock's forward indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with Citigroup and Senkron Guvenlik

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

The idea behind Citigroup and Senkron Guvenlik ve 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.