Correlation Between Citigroup and Maywufa
Can any of the company-specific risk be diversified away by investing in both Citigroup and Maywufa 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 Maywufa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Maywufa Co, you can compare the effects of market volatilities on Citigroup and Maywufa 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 Maywufa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Maywufa.
Diversification Opportunities for Citigroup and Maywufa
Very good diversification
The 3 months correlation between Citigroup and Maywufa is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Maywufa Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maywufa 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 Maywufa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maywufa has no effect on the direction of Citigroup i.e., Citigroup and Maywufa go up and down completely randomly.
Pair Corralation between Citigroup and Maywufa
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.88 times more return on investment than Maywufa. However, Citigroup is 1.88 times more volatile than Maywufa Co. It trades about 0.07 of its potential returns per unit of risk. Maywufa Co is currently generating about -0.06 per unit of risk. If you would invest 6,079 in Citigroup on September 1, 2024 and sell it today you would earn a total of 1,008 from holding Citigroup or generate 16.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Citigroup vs. Maywufa Co
Performance |
| Timeline |
| Citigroup |
| Maywufa |
Citigroup and Maywufa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Maywufa
The main advantage of trading using opposite Citigroup and Maywufa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Maywufa 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 Maywufa will offset losses from the drop in Maywufa's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
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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