Correlation Between Citigroup and Barunson Entertainment
Can any of the company-specific risk be diversified away by investing in both Citigroup and Barunson Entertainment 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 Barunson Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Barunson Entertainment Arts, you can compare the effects of market volatilities on Citigroup and Barunson Entertainment 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 Barunson Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Barunson Entertainment.
Diversification Opportunities for Citigroup and Barunson Entertainment
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Barunson is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Barunson Entertainment Arts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barunson Entertainment 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 Barunson Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barunson Entertainment has no effect on the direction of Citigroup i.e., Citigroup and Barunson Entertainment go up and down completely randomly.
Pair Corralation between Citigroup and Barunson Entertainment
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.21 times more return on investment than Barunson Entertainment. However, Citigroup is 1.21 times more volatile than Barunson Entertainment Arts. It trades about 0.24 of its potential returns per unit of risk. Barunson Entertainment Arts is currently generating about -0.2 per unit of risk. If you would invest 6,245 in Citigroup on August 25, 2024 and sell it today you would earn a total of 739.00 from holding Citigroup or generate 11.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Barunson Entertainment Arts
Performance |
| Timeline |
| Citigroup |
| Barunson Entertainment |
Citigroup and Barunson Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Barunson Entertainment
The main advantage of trading using opposite Citigroup and Barunson Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Barunson Entertainment 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 Barunson Entertainment will offset losses from the drop in Barunson Entertainment's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Canadian Imperial Bank |
| Barunson Entertainment vs. Seoam Machinery Industry | Barunson Entertainment vs. GS Engineering Construction | Barunson Entertainment vs. Dongwoo Farm To | Barunson Entertainment vs. T3 Entertainment 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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