Correlation Between Citigroup and ABOV Semiconductor
Can any of the company-specific risk be diversified away by investing in both Citigroup and ABOV Semiconductor 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 ABOV Semiconductor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and ABOV Semiconductor Co, you can compare the effects of market volatilities on Citigroup and ABOV Semiconductor 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 ABOV Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and ABOV Semiconductor.
Diversification Opportunities for Citigroup and ABOV Semiconductor
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and ABOV is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and ABOV Semiconductor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ABOV Semiconductor 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 ABOV Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ABOV Semiconductor has no effect on the direction of Citigroup i.e., Citigroup and ABOV Semiconductor go up and down completely randomly.
Pair Corralation between Citigroup and ABOV Semiconductor
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.77 times more return on investment than ABOV Semiconductor. However, Citigroup is 1.29 times less risky than ABOV Semiconductor. It trades about 0.21 of its potential returns per unit of risk. ABOV Semiconductor Co is currently generating about -0.25 per unit of risk. If you would invest 6,360 in Citigroup on August 29, 2024 and sell it today you would earn a total of 615.00 from holding Citigroup or generate 9.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. ABOV Semiconductor Co
Performance |
| Timeline |
| Citigroup |
| ABOV Semiconductor |
Citigroup and ABOV Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and ABOV Semiconductor
The main advantage of trading using opposite Citigroup and ABOV Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, ABOV Semiconductor 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 ABOV Semiconductor will offset losses from the drop in ABOV Semiconductor's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| ABOV Semiconductor vs. Daou Data Corp | ABOV Semiconductor vs. Busan Industrial Co | ABOV Semiconductor vs. Busan Ind | ABOV Semiconductor vs. Shinhan WTI Futures |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |