Correlation Between Citigroup and Absa Multi
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By analyzing existing cross correlation between Citigroup and Absa Multi Managed, you can compare the effects of market volatilities on Citigroup and Absa Multi 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 Absa Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Absa Multi.
Diversification Opportunities for Citigroup and Absa Multi
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and Absa is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Absa Multi Managed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Absa Multi Managed 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 Absa Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Absa Multi Managed has no effect on the direction of Citigroup i.e., Citigroup and Absa Multi go up and down completely randomly.
Pair Corralation between Citigroup and Absa Multi
Taking into account the 90-day investment horizon Citigroup is expected to generate 3.79 times more return on investment than Absa Multi. However, Citigroup is 3.79 times more volatile than Absa Multi Managed. It trades about 0.08 of its potential returns per unit of risk. Absa Multi Managed is currently generating about 0.09 per unit of risk. If you would invest 4,112 in Citigroup on September 5, 2024 and sell it today you would earn a total of 3,030 from holding Citigroup or generate 73.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.79% |
| Values | Daily Returns |
Citigroup vs. Absa Multi Managed
Performance |
| Timeline |
| Citigroup |
| Absa Multi Managed |
Citigroup and Absa Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Absa Multi
The main advantage of trading using opposite Citigroup and Absa Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Absa Multi 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 Absa Multi will offset losses from the drop in Absa Multi's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Absa Multi vs. Sasol Ltd Bee | Absa Multi vs. Centaur Bci Balanced | Absa Multi vs. Sabvest Capital | Absa Multi vs. Growthpoint Properties |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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