Correlation Between Citigroup and AeroSpace Technology
Can any of the company-specific risk be diversified away by investing in both Citigroup and AeroSpace Technology 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 AeroSpace Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and AeroSpace Technology of, you can compare the effects of market volatilities on Citigroup and AeroSpace Technology 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 AeroSpace Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and AeroSpace Technology.
Diversification Opportunities for Citigroup and AeroSpace Technology
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and AeroSpace is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and AeroSpace Technology of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AeroSpace Technology 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 AeroSpace Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AeroSpace Technology has no effect on the direction of Citigroup i.e., Citigroup and AeroSpace Technology go up and down completely randomly.
Pair Corralation between Citigroup and AeroSpace Technology
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.21 times more return on investment than AeroSpace Technology. However, Citigroup is 1.21 times more volatile than AeroSpace Technology of. It trades about 0.33 of its potential returns per unit of risk. AeroSpace Technology of is currently generating about -0.14 per unit of risk. If you would invest 6,235 in Citigroup on September 4, 2024 and sell it today you would earn a total of 904.00 from holding Citigroup or generate 14.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Citigroup vs. AeroSpace Technology of
Performance |
| Timeline |
| Citigroup |
| AeroSpace Technology |
Citigroup and AeroSpace Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and AeroSpace Technology
The main advantage of trading using opposite Citigroup and AeroSpace Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, AeroSpace Technology 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 AeroSpace Technology will offset losses from the drop in AeroSpace Technology's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| AeroSpace Technology vs. LG Display | AeroSpace Technology vs. Hyundai Motor | AeroSpace Technology vs. Hyundai Motor Co | AeroSpace Technology vs. Hyundai Motor 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |