Correlation Between Citigroup and APELLIS PHARMACTDL
Can any of the company-specific risk be diversified away by investing in both Citigroup and APELLIS PHARMACTDL 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 APELLIS PHARMACTDL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and APELLIS PHARMACTDL 0001, you can compare the effects of market volatilities on Citigroup and APELLIS PHARMACTDL 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 APELLIS PHARMACTDL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and APELLIS PHARMACTDL.
Diversification Opportunities for Citigroup and APELLIS PHARMACTDL
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and APELLIS is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and APELLIS PHARMACTDL 0001 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on APELLIS PHARMACTDL 0001 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 APELLIS PHARMACTDL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of APELLIS PHARMACTDL 0001 has no effect on the direction of Citigroup i.e., Citigroup and APELLIS PHARMACTDL go up and down completely randomly.
Pair Corralation between Citigroup and APELLIS PHARMACTDL
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.44 times more return on investment than APELLIS PHARMACTDL. However, Citigroup is 2.28 times less risky than APELLIS PHARMACTDL. It trades about 0.01 of its potential returns per unit of risk. APELLIS PHARMACTDL 0001 is currently generating about 0.01 per unit of risk. If you would invest 7,087 in Citigroup on September 30, 2024 and sell it today you would earn a total of 13.00 from holding Citigroup or generate 0.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 90.48% |
| Values | Daily Returns |
Citigroup vs. APELLIS PHARMACTDL 0001
Performance |
| Timeline |
| Citigroup |
| APELLIS PHARMACTDL 0001 |
Citigroup and APELLIS PHARMACTDL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and APELLIS PHARMACTDL
The main advantage of trading using opposite Citigroup and APELLIS PHARMACTDL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, APELLIS PHARMACTDL 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 APELLIS PHARMACTDL will offset losses from the drop in APELLIS PHARMACTDL's long position.The idea behind Citigroup and APELLIS PHARMACTDL 0001 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| APELLIS PHARMACTDL vs. BURLINGTON STORES | APELLIS PHARMACTDL vs. Burlington Stores | APELLIS PHARMACTDL vs. COSTCO WHOLESALE CDR | APELLIS PHARMACTDL vs. CPU SOFTWAREHOUSE |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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