Correlation Between Citigroup and Turkiye Vakiflar
Can any of the company-specific risk be diversified away by investing in both Citigroup and Turkiye Vakiflar 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 Turkiye Vakiflar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Turkiye Vakiflar Bankasi, you can compare the effects of market volatilities on Citigroup and Turkiye Vakiflar 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 Turkiye Vakiflar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Turkiye Vakiflar.
Diversification Opportunities for Citigroup and Turkiye Vakiflar
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Citigroup and Turkiye is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Turkiye Vakiflar Bankasi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkiye Vakiflar Bankasi 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 Turkiye Vakiflar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turkiye Vakiflar Bankasi has no effect on the direction of Citigroup i.e., Citigroup and Turkiye Vakiflar go up and down completely randomly.
Pair Corralation between Citigroup and Turkiye Vakiflar
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.1 times less return on investment than Turkiye Vakiflar. But when comparing it to its historical volatility, Citigroup is 1.47 times less risky than Turkiye Vakiflar. It trades about 0.26 of its potential returns per unit of risk. Turkiye Vakiflar Bankasi is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 2,056 in Turkiye Vakiflar Bankasi on September 1, 2024 and sell it today you would earn a total of 262.00 from holding Turkiye Vakiflar Bankasi or generate 12.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Citigroup vs. Turkiye Vakiflar Bankasi
Performance |
| Timeline |
| Citigroup |
| Turkiye Vakiflar Bankasi |
Citigroup and Turkiye Vakiflar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Turkiye Vakiflar
The main advantage of trading using opposite Citigroup and Turkiye Vakiflar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Turkiye Vakiflar 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 Turkiye Vakiflar will offset losses from the drop in Turkiye Vakiflar's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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