Correlation Between Citigroup and Jyske Bank
Can any of the company-specific risk be diversified away by investing in both Citigroup and Jyske Bank 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 Jyske Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Jyske Bank AS, you can compare the effects of market volatilities on Citigroup and Jyske Bank 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 Jyske Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Jyske Bank.
Diversification Opportunities for Citigroup and Jyske Bank
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Citigroup and Jyske is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Jyske Bank AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jyske Bank AS 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 Jyske Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jyske Bank AS has no effect on the direction of Citigroup i.e., Citigroup and Jyske Bank go up and down completely randomly.
Pair Corralation between Citigroup and Jyske Bank
Assuming the 90 days trading horizon Citigroup is expected to generate 1.18 times more return on investment than Jyske Bank. However, Citigroup is 1.18 times more volatile than Jyske Bank AS. It trades about 0.08 of its potential returns per unit of risk. Jyske Bank AS is currently generating about 0.0 per unit of risk. If you would invest 4,545 in Citigroup on September 2, 2024 and sell it today you would earn a total of 2,491 from holding Citigroup or generate 54.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.94% |
| Values | Daily Returns |
Citigroup vs. Jyske Bank AS
Performance |
| Timeline |
| Citigroup |
| Jyske Bank AS |
Citigroup and Jyske Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Jyske Bank
The main advantage of trading using opposite Citigroup and Jyske Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Jyske Bank 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 Jyske Bank will offset losses from the drop in Jyske Bank's long position.| Citigroup vs. MoneysupermarketCom Group PLC | Citigroup vs. McEwen Mining | Citigroup vs. Ebro Foods | Citigroup vs. Fevertree Drinks Plc |
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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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