Correlation Between Citigroup and BIST Electricity
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By analyzing existing cross correlation between Citigroup and BIST Electricity, you can compare the effects of market volatilities on Citigroup and BIST Electricity 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 BIST Electricity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and BIST Electricity.
Diversification Opportunities for Citigroup and BIST Electricity
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Citigroup and BIST is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and BIST Electricity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BIST Electricity 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 BIST Electricity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BIST Electricity has no effect on the direction of Citigroup i.e., Citigroup and BIST Electricity go up and down completely randomly.
Pair Corralation between Citigroup and BIST Electricity
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.49 times more return on investment than BIST Electricity. However, Citigroup is 1.49 times more volatile than BIST Electricity. It trades about 0.27 of its potential returns per unit of risk. BIST Electricity is currently generating about 0.14 per unit of risk. If you would invest 6,315 in Citigroup on September 2, 2024 and sell it today you would earn a total of 772.00 from holding Citigroup or generate 12.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Citigroup vs. BIST Electricity
Performance |
| Timeline |
Citigroup and BIST Electricity Volatility Contrast
Predicted Return Density |
| Returns |
Citigroup
Pair trading matchups for Citigroup
BIST Electricity
Pair trading matchups for BIST Electricity
Pair Trading with Citigroup and BIST Electricity
The main advantage of trading using opposite Citigroup and BIST Electricity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, BIST Electricity 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 BIST Electricity will offset losses from the drop in BIST Electricity'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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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