Correlation Between Citigroup and Tycoons Group
Can any of the company-specific risk be diversified away by investing in both Citigroup and Tycoons Group 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 Tycoons Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Tycoons Group Enterprise, you can compare the effects of market volatilities on Citigroup and Tycoons Group 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 Tycoons Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Tycoons Group.
Diversification Opportunities for Citigroup and Tycoons Group
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Citigroup and Tycoons is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Tycoons Group Enterprise in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tycoons Group Enterprise 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 Tycoons Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tycoons Group Enterprise has no effect on the direction of Citigroup i.e., Citigroup and Tycoons Group go up and down completely randomly.
Pair Corralation between Citigroup and Tycoons Group
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.61 times more return on investment than Tycoons Group. However, Citigroup is 1.64 times less risky than Tycoons Group. It trades about 0.07 of its potential returns per unit of risk. Tycoons Group Enterprise is currently generating about 0.02 per unit of risk. If you would invest 4,237 in Citigroup on September 4, 2024 and sell it today you would earn a total of 2,902 from holding Citigroup or generate 68.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.77% |
| Values | Daily Returns |
Citigroup vs. Tycoons Group Enterprise
Performance |
| Timeline |
| Citigroup |
| Tycoons Group Enterprise |
Citigroup and Tycoons Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Tycoons Group
The main advantage of trading using opposite Citigroup and Tycoons Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Tycoons Group 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 Tycoons Group will offset losses from the drop in Tycoons Group's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Tycoons Group vs. Universal Microelectronics Co | Tycoons Group vs. AVerMedia Technologies | Tycoons Group vs. Symtek Automation Asia | Tycoons Group vs. WiseChip Semiconductor |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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