Correlation Between Citigroup and CIG PANNONIA
Can any of the company-specific risk be diversified away by investing in both Citigroup and CIG PANNONIA 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 CIG PANNONIA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and CIG PANNONIA LIFE, you can compare the effects of market volatilities on Citigroup and CIG PANNONIA 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 CIG PANNONIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and CIG PANNONIA.
Diversification Opportunities for Citigroup and CIG PANNONIA
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Citigroup and CIG is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and CIG PANNONIA LIFE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIG PANNONIA LIFE 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 CIG PANNONIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIG PANNONIA LIFE has no effect on the direction of Citigroup i.e., Citigroup and CIG PANNONIA go up and down completely randomly.
Pair Corralation between Citigroup and CIG PANNONIA
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.27 times more return on investment than CIG PANNONIA. However, Citigroup is 1.27 times more volatile than CIG PANNONIA LIFE. It trades about 0.41 of its potential returns per unit of risk. CIG PANNONIA LIFE is currently generating about 0.41 per unit of risk. If you would invest 6,994 in Citigroup on November 3, 2024 and sell it today you would earn a total of 1,149 from holding Citigroup or generate 16.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 91.3% |
| Values | Daily Returns |
Citigroup vs. CIG PANNONIA LIFE
Performance |
| Timeline |
| Citigroup |
| CIG PANNONIA LIFE |
Citigroup and CIG PANNONIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and CIG PANNONIA
The main advantage of trading using opposite Citigroup and CIG PANNONIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, CIG PANNONIA 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 CIG PANNONIA will offset losses from the drop in CIG PANNONIA's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| CIG PANNONIA vs. Aflac Incorporated | CIG PANNONIA vs. CHINA PACINGRGDR5 YC1 | CIG PANNONIA vs. Phoenix Group Holdings | CIG PANNONIA vs. SANLAM LTD RC 01 |
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.
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