Correlation Between Arrow Financial and CITIGROUP
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By analyzing existing cross correlation between Arrow Financial and CITIGROUP INC 32, you can compare the effects of market volatilities on Arrow 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 Arrow Financial with a short position of CITIGROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arrow Financial and CITIGROUP.
Diversification Opportunities for Arrow Financial and CITIGROUP
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Arrow and CITIGROUP is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Arrow Financial and CITIGROUP INC 32 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIGROUP INC 32 and Arrow 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 Arrow Financial 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 32 has no effect on the direction of Arrow Financial i.e., Arrow Financial and CITIGROUP go up and down completely randomly.
Pair Corralation between Arrow Financial and CITIGROUP
Given the investment horizon of 90 days Arrow Financial is expected to generate 6.19 times more return on investment than CITIGROUP. However, Arrow Financial is 6.19 times more volatile than CITIGROUP INC 32. It trades about 0.21 of its potential returns per unit of risk. CITIGROUP INC 32 is currently generating about -0.19 per unit of risk. If you would invest 2,878 in Arrow Financial on September 3, 2024 and sell it today you would earn a total of 420.00 from holding Arrow Financial or generate 14.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Arrow Financial vs. CITIGROUP INC 32
Performance |
| Timeline |
| Arrow Financial |
| CITIGROUP INC 32 |
Arrow Financial and CITIGROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arrow Financial and CITIGROUP
The main advantage of trading using opposite Arrow Financial and CITIGROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arrow 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.| Arrow Financial vs. JPMorgan Chase Co | Arrow Financial vs. Citigroup | Arrow Financial vs. Wells Fargo | Arrow Financial vs. Toronto Dominion Bank |
| CITIGROUP vs. AEP TEX INC | CITIGROUP vs. US BANK NATIONAL | CITIGROUP vs. Jackson Financial | CITIGROUP vs. MetLife |
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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