Correlation Between Citigroup and Cheil Worldwide
Can any of the company-specific risk be diversified away by investing in both Citigroup and Cheil Worldwide at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Citigroup and Cheil Worldwide into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Cheil Worldwide, you can compare the effects of market volatilities on Citigroup and Cheil Worldwide 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 Cheil Worldwide. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Cheil Worldwide.
Diversification Opportunities for Citigroup and Cheil Worldwide
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Citigroup and Cheil is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Cheil Worldwide in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cheil Worldwide 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 Cheil Worldwide. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cheil Worldwide has no effect on the direction of Citigroup i.e., Citigroup and Cheil Worldwide go up and down completely randomly.
Pair Corralation between Citigroup and Cheil Worldwide
Taking into account the 90-day investment horizon Citigroup is expected to under-perform the Cheil Worldwide. In addition to that, Citigroup is 1.91 times more volatile than Cheil Worldwide. It trades about -0.08 of its total potential returns per unit of risk. Cheil Worldwide is currently generating about 0.38 per unit of volatility. If you would invest 1,718,000 in Cheil Worldwide on November 28, 2024 and sell it today you would earn a total of 101,000 from holding Cheil Worldwide or generate 5.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 85.71% |
| Values | Daily Returns |
Citigroup vs. Cheil Worldwide
Performance |
| Timeline |
| Citigroup |
| Cheil Worldwide |
Citigroup and Cheil Worldwide Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Cheil Worldwide
The main advantage of trading using opposite Citigroup and Cheil Worldwide positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Cheil Worldwide 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 Cheil Worldwide will offset losses from the drop in Cheil Worldwide's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Cheil Worldwide vs. Com2uS | Cheil Worldwide vs. NEOWIZ | Cheil Worldwide vs. Wemade CoLtd | Cheil Worldwide vs. Busan Industrial Co |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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