Correlation Between Citigroup and Do-Fluoride Chemicals
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By analyzing existing cross correlation between Citigroup and Do Fluoride Chemicals Co, you can compare the effects of market volatilities on Citigroup and Do-Fluoride Chemicals 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 Citigroup with a short position of Do-Fluoride Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Do-Fluoride Chemicals.
Diversification Opportunities for Citigroup and Do-Fluoride Chemicals
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Citigroup and Do-Fluoride is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Do Fluoride Chemicals Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Do Fluoride Chemicals and Citigroup 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 Citigroup are associated (or correlated) with Do-Fluoride Chemicals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Do Fluoride Chemicals has no effect on the direction of Citigroup i.e., Citigroup and Do-Fluoride Chemicals go up and down completely randomly.
Pair Corralation between Citigroup and Do-Fluoride Chemicals
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.59 times more return on investment than Do-Fluoride Chemicals. However, Citigroup is 1.69 times less risky than Do-Fluoride Chemicals. It trades about 0.26 of its potential returns per unit of risk. Do Fluoride Chemicals Co is currently generating about 0.13 per unit of risk. If you would invest 6,361 in Citigroup on September 1, 2024 and sell it today you would earn a total of 726.00 from holding Citigroup or generate 11.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Citigroup vs. Do Fluoride Chemicals Co
Performance |
| Timeline |
| Citigroup |
| Do Fluoride Chemicals |
Citigroup and Do-Fluoride Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Do-Fluoride Chemicals
The main advantage of trading using opposite Citigroup and Do-Fluoride Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Do-Fluoride Chemicals 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 Do-Fluoride Chemicals will offset losses from the drop in Do-Fluoride Chemicals' long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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