Correlation Between PT Bank and Citigroup
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By analyzing existing cross correlation between PT Bank Rakyat and Citigroup, you can compare the effects of market volatilities on PT Bank 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 PT Bank with a short position of Citigroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and Citigroup.
Diversification Opportunities for PT Bank and Citigroup
Pay attention - limited upside
The 3 months correlation between BYRA and Citigroup is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Rakyat and Citigroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citigroup and PT Bank 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 PT Bank Rakyat 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 PT Bank i.e., PT Bank and Citigroup go up and down completely randomly.
Pair Corralation between PT Bank and Citigroup
Assuming the 90 days trading horizon PT Bank Rakyat is expected to under-perform the Citigroup. But the stock apears to be less risky and, when comparing its historical volatility, PT Bank Rakyat is 1.06 times less risky than Citigroup. The stock trades about -0.2 of its potential returns per unit of risk. The Citigroup is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 5,892 in Citigroup on September 1, 2024 and sell it today you would earn a total of 825.00 from holding Citigroup or generate 14.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
PT Bank Rakyat vs. Citigroup
Performance |
| Timeline |
| PT Bank Rakyat |
| Citigroup |
PT Bank and Citigroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and Citigroup
The main advantage of trading using opposite PT Bank and Citigroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank 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.The idea behind PT Bank Rakyat and Citigroup pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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