Correlation Between Aldel Financial and CITIGROUP
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By analyzing existing cross correlation between Aldel Financial II and CITIGROUP INC 465, you can compare the effects of market volatilities on Aldel Financial 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 Aldel Financial with a short position of CITIGROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aldel Financial and CITIGROUP.
Diversification Opportunities for Aldel Financial and CITIGROUP
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aldel and CITIGROUP is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Aldel Financial II and CITIGROUP INC 465 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIGROUP INC 465 and Aldel Financial 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 Aldel Financial II 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 INC 465 has no effect on the direction of Aldel Financial i.e., Aldel Financial and CITIGROUP go up and down completely randomly.
Pair Corralation between Aldel Financial and CITIGROUP
Assuming the 90 days horizon Aldel Financial is expected to generate 728.26 times less return on investment than CITIGROUP. But when comparing it to its historical volatility, Aldel Financial II is 493.22 times less risky than CITIGROUP. It trades about 0.03 of its potential returns per unit of risk. CITIGROUP INC 465 is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 8,766 in CITIGROUP INC 465 on September 4, 2024 and sell it today you would earn a total of 180.00 from holding CITIGROUP INC 465 or generate 2.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 8.22% |
| Values | Daily Returns |
Aldel Financial II vs. CITIGROUP INC 465
Performance |
| Timeline |
| Aldel Financial II |
| CITIGROUP INC 465 |
Aldel Financial and CITIGROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aldel Financial and CITIGROUP
The main advantage of trading using opposite Aldel Financial and CITIGROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aldel Financial 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.| Aldel Financial vs. Saia Inc | Aldel Financial vs. The Gap, | Aldel Financial vs. Summit Materials | Aldel Financial vs. Barrick Gold Corp |
| CITIGROUP vs. AerSale Corp | CITIGROUP vs. Enersys | CITIGROUP vs. Aldel Financial II | CITIGROUP vs. Jacobs Solutions |
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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