Correlation Between Citigroup and DNB Norge
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By analyzing existing cross correlation between Citigroup and DNB Norge Selektiv, you can compare the effects of market volatilities on Citigroup and DNB Norge 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 DNB Norge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and DNB Norge.
Diversification Opportunities for Citigroup and DNB Norge
Very weak diversification
The 3 months correlation between Citigroup and DNB is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and DNB Norge Selektiv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DNB Norge Selektiv 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 DNB Norge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DNB Norge Selektiv has no effect on the direction of Citigroup i.e., Citigroup and DNB Norge go up and down completely randomly.
Pair Corralation between Citigroup and DNB Norge
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.98 times more return on investment than DNB Norge. However, Citigroup is 1.98 times more volatile than DNB Norge Selektiv. It trades about 0.13 of its potential returns per unit of risk. DNB Norge Selektiv is currently generating about 0.05 per unit of risk. If you would invest 3,863 in Citigroup on September 3, 2024 and sell it today you would earn a total of 3,276 from holding Citigroup or generate 84.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.36% |
| Values | Daily Returns |
Citigroup vs. DNB Norge Selektiv
Performance |
| Timeline |
| Citigroup |
| DNB Norge Selektiv |
Citigroup and DNB Norge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and DNB Norge
The main advantage of trading using opposite Citigroup and DNB Norge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, DNB Norge 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 DNB Norge will offset losses from the drop in DNB Norge's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| DNB Norge vs. Franklin Floating Rate | DNB Norge vs. Franklin Floating Rate | DNB Norge vs. Franklin Floating Rate | DNB Norge vs. Dalata Hotel Group |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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