Correlation Between Citigroup and Arcticzymes Technologies
Can any of the company-specific risk be diversified away by investing in both Citigroup and Arcticzymes Technologies 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 Arcticzymes Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Arcticzymes Technologies ASA, you can compare the effects of market volatilities on Citigroup and Arcticzymes Technologies 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 Arcticzymes Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Arcticzymes Technologies.
Diversification Opportunities for Citigroup and Arcticzymes Technologies
-0.89 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Arcticzymes is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Arcticzymes Technologies ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arcticzymes Technologies 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 Arcticzymes Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arcticzymes Technologies has no effect on the direction of Citigroup i.e., Citigroup and Arcticzymes Technologies go up and down completely randomly.
Pair Corralation between Citigroup and Arcticzymes Technologies
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.57 times more return on investment than Arcticzymes Technologies. However, Citigroup is 1.75 times less risky than Arcticzymes Technologies. It trades about 0.33 of its potential returns per unit of risk. Arcticzymes Technologies ASA is currently generating about -0.3 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 | Significant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Citigroup vs. Arcticzymes Technologies ASA
Performance |
| Timeline |
| Citigroup |
| Arcticzymes Technologies |
Citigroup and Arcticzymes Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Arcticzymes Technologies
The main advantage of trading using opposite Citigroup and Arcticzymes Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Arcticzymes Technologies 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 Arcticzymes Technologies will offset losses from the drop in Arcticzymes Technologies' long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Arcticzymes Technologies vs. Samsung Electronics Co | Arcticzymes Technologies vs. Samsung Electronics Co | Arcticzymes Technologies vs. Hyundai Motor | Arcticzymes Technologies vs. Toyota Motor Corp |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |