Correlation Between Citigroup and AptaBio Therapeutics
Can any of the company-specific risk be diversified away by investing in both Citigroup and AptaBio Therapeutics 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 AptaBio Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and AptaBio Therapeutics, you can compare the effects of market volatilities on Citigroup and AptaBio Therapeutics 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 AptaBio Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and AptaBio Therapeutics.
Diversification Opportunities for Citigroup and AptaBio Therapeutics
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and AptaBio is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and AptaBio Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AptaBio Therapeutics 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 AptaBio Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AptaBio Therapeutics has no effect on the direction of Citigroup i.e., Citigroup and AptaBio Therapeutics go up and down completely randomly.
Pair Corralation between Citigroup and AptaBio Therapeutics
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.34 times more return on investment than AptaBio Therapeutics. However, Citigroup is 2.92 times less risky than AptaBio Therapeutics. It trades about 0.08 of its potential returns per unit of risk. AptaBio Therapeutics is currently generating about -0.01 per unit of risk. If you would invest 4,525 in Citigroup on August 31, 2024 and sell it today you would earn a total of 2,562 from holding Citigroup or generate 56.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 97.06% |
| Values | Daily Returns |
Citigroup vs. AptaBio Therapeutics
Performance |
| Timeline |
| Citigroup |
| AptaBio Therapeutics |
Citigroup and AptaBio Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and AptaBio Therapeutics
The main advantage of trading using opposite Citigroup and AptaBio Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, AptaBio Therapeutics 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 AptaBio Therapeutics will offset losses from the drop in AptaBio Therapeutics' long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| AptaBio Therapeutics vs. ABL Bio | AptaBio Therapeutics vs. Helixmith Co | AptaBio Therapeutics vs. OliX PharmaceuticalsInc | AptaBio Therapeutics vs. Oscotec |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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