Correlation Between Algoma Steel and CITIGROUP
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By analyzing existing cross correlation between Algoma Steel Group and CITIGROUP INC, you can compare the effects of market volatilities on Algoma Steel 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 Algoma Steel with a short position of CITIGROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Algoma Steel and CITIGROUP.
Diversification Opportunities for Algoma Steel and CITIGROUP
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Algoma and CITIGROUP is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Algoma Steel Group and CITIGROUP INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIGROUP INC and Algoma Steel 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 Algoma Steel Group 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 has no effect on the direction of Algoma Steel i.e., Algoma Steel and CITIGROUP go up and down completely randomly.
Pair Corralation between Algoma Steel and CITIGROUP
Given the investment horizon of 90 days Algoma Steel Group is expected to generate 4.72 times more return on investment than CITIGROUP. However, Algoma Steel is 4.72 times more volatile than CITIGROUP INC. It trades about 0.09 of its potential returns per unit of risk. CITIGROUP INC is currently generating about 0.06 per unit of risk. If you would invest 643.00 in Algoma Steel Group on September 4, 2024 and sell it today you would earn a total of 413.00 from holding Algoma Steel Group or generate 64.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.97% |
| Values | Daily Returns |
Algoma Steel Group vs. CITIGROUP INC
Performance |
| Timeline |
| Algoma Steel Group |
| CITIGROUP INC |
Algoma Steel and CITIGROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Algoma Steel and CITIGROUP
The main advantage of trading using opposite Algoma Steel and CITIGROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Algoma Steel 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.| Algoma Steel vs. Friedman Industries | Algoma Steel vs. Algoma Steel Group | Algoma Steel vs. Reliance Steel Aluminum | Algoma Steel vs. Universal Stainless Alloy |
| CITIGROUP vs. Chewy Inc | CITIGROUP vs. Revolve Group LLC | CITIGROUP vs. Kite Realty Group | CITIGROUP vs. Amkor Technology |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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