Correlation Between Cboe UK and Citigroup
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By analyzing existing cross correlation between Cboe UK Consumer and Citigroup, you can compare the effects of market volatilities on Cboe UK 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 Cboe UK with a short position of Citigroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cboe UK and Citigroup.
Diversification Opportunities for Cboe UK and Citigroup
Almost no diversification
The 3 months correlation between Cboe and Citigroup is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Cboe UK Consumer and Citigroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citigroup and Cboe UK 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 Cboe UK Consumer 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 Cboe UK i.e., Cboe UK and Citigroup go up and down completely randomly.
Pair Corralation between Cboe UK and Citigroup
Assuming the 90 days trading horizon Cboe UK is expected to generate 2.01 times less return on investment than Citigroup. But when comparing it to its historical volatility, Cboe UK Consumer is 1.69 times less risky than Citigroup. It trades about 0.08 of its potential returns per unit of risk. Citigroup is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 4,454 in Citigroup on September 12, 2024 and sell it today you would earn a total of 2,740 from holding Citigroup or generate 61.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 97.77% |
| Values | Daily Returns |
Cboe UK Consumer vs. Citigroup
Performance |
| Timeline |
Cboe UK and Citigroup Volatility Contrast
Predicted Return Density |
| Returns |
Cboe UK Consumer
Pair trading matchups for Cboe UK
Citigroup
Pair trading matchups for Citigroup
Pair Trading with Cboe UK and Citigroup
The main advantage of trading using opposite Cboe UK and Citigroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cboe UK 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.| Cboe UK vs. Central Asia Metals | Cboe UK vs. Gaztransport et Technigaz | Cboe UK vs. Park Hotels Resorts | Cboe UK vs. Addtech |
| Citigroup vs. Smithson Investment Trust | Citigroup vs. Blackrock World Mining | Citigroup vs. CNH Industrial NV | Citigroup vs. Aberdeen Diversified Income |
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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