Correlation Between Citigroup and AWILCO DRILLING
Can any of the company-specific risk be diversified away by investing in both Citigroup and AWILCO DRILLING 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 AWILCO DRILLING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and AWILCO DRILLING PLC, you can compare the effects of market volatilities on Citigroup and AWILCO DRILLING 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 AWILCO DRILLING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and AWILCO DRILLING.
Diversification Opportunities for Citigroup and AWILCO DRILLING
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Citigroup and AWILCO is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and AWILCO DRILLING PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AWILCO DRILLING PLC 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 AWILCO DRILLING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AWILCO DRILLING PLC has no effect on the direction of Citigroup i.e., Citigroup and AWILCO DRILLING go up and down completely randomly.
Pair Corralation between Citigroup and AWILCO DRILLING
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.62 times more return on investment than AWILCO DRILLING. However, Citigroup is 1.61 times less risky than AWILCO DRILLING. It trades about 0.24 of its potential returns per unit of risk. AWILCO DRILLING PLC is currently generating about -0.01 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. AWILCO DRILLING PLC
Performance |
| Timeline |
| Citigroup |
| AWILCO DRILLING PLC |
Citigroup and AWILCO DRILLING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and AWILCO DRILLING
The main advantage of trading using opposite Citigroup and AWILCO DRILLING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, AWILCO DRILLING 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 AWILCO DRILLING will offset losses from the drop in AWILCO DRILLING's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| AWILCO DRILLING vs. Apple Inc | AWILCO DRILLING vs. Apple Inc | AWILCO DRILLING vs. Apple Inc | AWILCO DRILLING vs. Apple Inc |
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 Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Stocks Directory Find actively traded stocks across global markets |