Correlation Between Citigroup and NexturnBioscience
Can any of the company-specific risk be diversified away by investing in both Citigroup and NexturnBioscience 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 NexturnBioscience into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and NexturnBioscience Co, you can compare the effects of market volatilities on Citigroup and NexturnBioscience 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 NexturnBioscience. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and NexturnBioscience.
Diversification Opportunities for Citigroup and NexturnBioscience
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Citigroup and NexturnBioscience is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and NexturnBioscience Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NexturnBioscience 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 NexturnBioscience. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NexturnBioscience has no effect on the direction of Citigroup i.e., Citigroup and NexturnBioscience go up and down completely randomly.
Pair Corralation between Citigroup and NexturnBioscience
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.22 times less return on investment than NexturnBioscience. But when comparing it to its historical volatility, Citigroup is 4.67 times less risky than NexturnBioscience. It trades about 0.18 of its potential returns per unit of risk. NexturnBioscience Co is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 290,000 in NexturnBioscience Co on August 26, 2024 and sell it today you would earn a total of 55,000 from holding NexturnBioscience Co or generate 18.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 93.18% |
| Values | Daily Returns |
Citigroup vs. NexturnBioscience Co
Performance |
| Timeline |
| Citigroup |
| NexturnBioscience |
Citigroup and NexturnBioscience Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and NexturnBioscience
The main advantage of trading using opposite Citigroup and NexturnBioscience positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, NexturnBioscience 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 NexturnBioscience will offset losses from the drop in NexturnBioscience's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| NexturnBioscience vs. Rainbow Robotics | NexturnBioscience vs. COWINTECH Co | NexturnBioscience vs. CS BEARING CoLtd | NexturnBioscience vs. DAEMO Engineering 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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