Correlation Between Citigroup and MiraeAsset TIGER
Can any of the company-specific risk be diversified away by investing in both Citigroup and MiraeAsset TIGER 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 MiraeAsset TIGER into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and MiraeAsset TIGER Synth Morningstar, you can compare the effects of market volatilities on Citigroup and MiraeAsset TIGER 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 MiraeAsset TIGER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and MiraeAsset TIGER.
Diversification Opportunities for Citigroup and MiraeAsset TIGER
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Citigroup and MiraeAsset is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and MiraeAsset TIGER Synth Morning in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MiraeAsset TIGER Synth 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 MiraeAsset TIGER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MiraeAsset TIGER Synth has no effect on the direction of Citigroup i.e., Citigroup and MiraeAsset TIGER go up and down completely randomly.
Pair Corralation between Citigroup and MiraeAsset TIGER
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.13 times more return on investment than MiraeAsset TIGER. However, Citigroup is 2.13 times more volatile than MiraeAsset TIGER Synth Morningstar. It trades about 0.23 of its potential returns per unit of risk. MiraeAsset TIGER Synth Morningstar is currently generating about 0.05 per unit of risk. If you would invest 6,393 in Citigroup on August 31, 2024 and sell it today you would earn a total of 694.00 from holding Citigroup or generate 10.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. MiraeAsset TIGER Synth Morning
Performance |
| Timeline |
| Citigroup |
| MiraeAsset TIGER Synth |
Citigroup and MiraeAsset TIGER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and MiraeAsset TIGER
The main advantage of trading using opposite Citigroup and MiraeAsset TIGER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, MiraeAsset TIGER 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 MiraeAsset TIGER will offset losses from the drop in MiraeAsset TIGER's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| MiraeAsset TIGER vs. MiraeAsset TIGER Quality | MiraeAsset TIGER vs. MiraeAsset TIGER NIKKEI225 | MiraeAsset TIGER vs. MiraeAsset TIGER 200 | MiraeAsset TIGER vs. MiraeAsset TIGER Synth Japan |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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