Correlation Between Citigroup and Tower One
Can any of the company-specific risk be diversified away by investing in both Citigroup and Tower One 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 Tower One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Tower One Wireless, you can compare the effects of market volatilities on Citigroup and Tower One 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 Tower One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Tower One.
Diversification Opportunities for Citigroup and Tower One
Pay attention - limited upside
The 3 months correlation between Citigroup and Tower is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Tower One Wireless in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tower One Wireless 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 Tower One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tower One Wireless has no effect on the direction of Citigroup i.e., Citigroup and Tower One go up and down completely randomly.
Pair Corralation between Citigroup and Tower One
If you would invest 5,415 in Citigroup on August 28, 2024 and sell it today you would earn a total of 1,660 from holding Citigroup or generate 30.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.05% |
| Values | Daily Returns |
Citigroup vs. Tower One Wireless
Performance |
| Timeline |
| Citigroup |
| Tower One Wireless |
Citigroup and Tower One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Tower One
The main advantage of trading using opposite Citigroup and Tower One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Tower One 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 Tower One will offset losses from the drop in Tower One's long position.| Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal | Citigroup vs. Bank of Nova |
| Tower One vs. Live Nation Entertainment | Tower One vs. STORE ELECTRONIC | Tower One vs. Richardson Electronics | Tower One vs. AOI Electronics Co |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |