Correlation Between Citigroup and WFD Unibail
Can any of the company-specific risk be diversified away by investing in both Citigroup and WFD Unibail 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 WFD Unibail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and WFD Unibail Rodamco, you can compare the effects of market volatilities on Citigroup and WFD Unibail 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 WFD Unibail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and WFD Unibail.
Diversification Opportunities for Citigroup and WFD Unibail
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and WFD is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and WFD Unibail Rodamco in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WFD Unibail Rodamco 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 WFD Unibail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WFD Unibail Rodamco has no effect on the direction of Citigroup i.e., Citigroup and WFD Unibail go up and down completely randomly.
Pair Corralation between Citigroup and WFD Unibail
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.49 times more return on investment than WFD Unibail. However, Citigroup is 1.49 times more volatile than WFD Unibail Rodamco. It trades about 0.21 of its potential returns per unit of risk. WFD Unibail Rodamco is currently generating about -0.01 per unit of risk. If you would invest 6,412 in Citigroup on August 30, 2024 and sell it today you would earn a total of 604.00 from holding Citigroup or generate 9.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. WFD Unibail Rodamco
Performance |
| Timeline |
| Citigroup |
| WFD Unibail Rodamco |
Citigroup and WFD Unibail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and WFD Unibail
The main advantage of trading using opposite Citigroup and WFD Unibail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, WFD Unibail 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 WFD Unibail will offset losses from the drop in WFD Unibail's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| WFD Unibail vs. FISH PAYK HEALTH | WFD Unibail vs. Monster Beverage Corp | WFD Unibail vs. EHEALTH | WFD Unibail vs. FEMALE HEALTH |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |