Correlation Between Citigroup and Silverline Endustri
Can any of the company-specific risk be diversified away by investing in both Citigroup and Silverline Endustri 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 Silverline Endustri into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Silverline Endustri ve, you can compare the effects of market volatilities on Citigroup and Silverline Endustri 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 Silverline Endustri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Silverline Endustri.
Diversification Opportunities for Citigroup and Silverline Endustri
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Citigroup and Silverline is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Silverline Endustri ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silverline Endustri 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 Silverline Endustri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silverline Endustri has no effect on the direction of Citigroup i.e., Citigroup and Silverline Endustri go up and down completely randomly.
Pair Corralation between Citigroup and Silverline Endustri
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.11 times more return on investment than Silverline Endustri. However, Citigroup is 1.11 times more volatile than Silverline Endustri ve. It trades about 0.45 of its potential returns per unit of risk. Silverline Endustri ve is currently generating about 0.06 per unit of risk. If you would invest 6,842 in Citigroup on October 20, 2024 and sell it today you would earn a total of 1,157 from holding Citigroup or generate 16.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Citigroup vs. Silverline Endustri ve
Performance |
| Timeline |
| Citigroup |
| Silverline Endustri |
Citigroup and Silverline Endustri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Silverline Endustri
The main advantage of trading using opposite Citigroup and Silverline Endustri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Silverline Endustri 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 Silverline Endustri will offset losses from the drop in Silverline Endustri's long position.| Citigroup vs. Bank of Montreal | Citigroup vs. Canadian Imperial Bank | Citigroup vs. Bank of Nova | Citigroup vs. JPMorgan Chase Co |
| Silverline Endustri vs. MEGA METAL | Silverline Endustri vs. Akcansa Cimento Sanayi | Silverline Endustri vs. ICBC Turkey Bank | Silverline Endustri vs. Creditwest Faktoring AS |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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