Correlation Between Citigroup and Coronation Financial
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By analyzing existing cross correlation between Citigroup and Coronation Financial, you can compare the effects of market volatilities on Citigroup and Coronation Financial 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 Coronation Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Coronation Financial.
Diversification Opportunities for Citigroup and Coronation Financial
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Citigroup and Coronation is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Coronation Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coronation Financial 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 Coronation Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coronation Financial has no effect on the direction of Citigroup i.e., Citigroup and Coronation Financial go up and down completely randomly.
Pair Corralation between Citigroup and Coronation Financial
Taking into account the 90-day investment horizon Citigroup is expected to generate 3.53 times more return on investment than Coronation Financial. However, Citigroup is 3.53 times more volatile than Coronation Financial. It trades about 0.33 of its potential returns per unit of risk. Coronation Financial is currently generating about 0.02 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 Together |
| Strength | Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Citigroup vs. Coronation Financial
Performance |
| Timeline |
| Citigroup |
| Coronation Financial |
Citigroup and Coronation Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Coronation Financial
The main advantage of trading using opposite Citigroup and Coronation Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Coronation Financial 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 Coronation Financial will offset losses from the drop in Coronation Financial's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Coronation Financial vs. Coronation Balanced Plus | Coronation Financial vs. Coronation Industrial | Coronation Financial vs. Coronation Capital Plus | Coronation Financial vs. Coronation Global Equity |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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