Correlation Between SIDETRADE and Citigroup
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By analyzing existing cross correlation between SIDETRADE EO 1 and Citigroup, you can compare the effects of market volatilities on SIDETRADE and Citigroup 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 SIDETRADE with a short position of Citigroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of SIDETRADE and Citigroup.
Diversification Opportunities for SIDETRADE and Citigroup
Poor diversification
The 3 months correlation between SIDETRADE and Citigroup is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding SIDETRADE EO 1 and Citigroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citigroup and SIDETRADE 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 SIDETRADE EO 1 are associated (or correlated) with Citigroup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citigroup has no effect on the direction of SIDETRADE i.e., SIDETRADE and Citigroup go up and down completely randomly.
Pair Corralation between SIDETRADE and Citigroup
Assuming the 90 days horizon SIDETRADE is expected to generate 1.07 times less return on investment than Citigroup. In addition to that, SIDETRADE is 1.29 times more volatile than Citigroup. It trades about 0.1 of its total potential returns per unit of risk. Citigroup is currently generating about 0.14 per unit of volatility. If you would invest 3,757 in Citigroup on September 1, 2024 and sell it today you would earn a total of 2,960 from holding Citigroup or generate 78.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.64% |
| Values | Daily Returns |
SIDETRADE EO 1 vs. Citigroup
Performance |
| Timeline |
| SIDETRADE EO 1 |
| Citigroup |
SIDETRADE and Citigroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SIDETRADE and Citigroup
The main advantage of trading using opposite SIDETRADE and Citigroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SIDETRADE position performs unexpectedly, Citigroup 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 Citigroup will offset losses from the drop in Citigroup's long position.| SIDETRADE vs. CANON MARKETING JP | SIDETRADE vs. Tradeweb Markets | SIDETRADE vs. Entravision Communications | SIDETRADE vs. Tower One Wireless |
| Citigroup vs. The Hanover Insurance | Citigroup vs. Safety Insurance Group | Citigroup vs. Uber Technologies | Citigroup vs. NetSol Technologies |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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