Correlation Between Citigroup and MOBILE FACTORY
Can any of the company-specific risk be diversified away by investing in both Citigroup and MOBILE FACTORY 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 MOBILE FACTORY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and MOBILE FACTORY INC, you can compare the effects of market volatilities on Citigroup and MOBILE FACTORY 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 MOBILE FACTORY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and MOBILE FACTORY.
Diversification Opportunities for Citigroup and MOBILE FACTORY
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Citigroup and MOBILE is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and MOBILE FACTORY INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MOBILE FACTORY INC 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 MOBILE FACTORY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MOBILE FACTORY INC has no effect on the direction of Citigroup i.e., Citigroup and MOBILE FACTORY go up and down completely randomly.
Pair Corralation between Citigroup and MOBILE FACTORY
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.75 times more return on investment than MOBILE FACTORY. However, Citigroup is 1.32 times less risky than MOBILE FACTORY. It trades about 0.06 of its potential returns per unit of risk. MOBILE FACTORY INC is currently generating about 0.0 per unit of risk. If you would invest 4,708 in Citigroup on October 11, 2024 and sell it today you would earn a total of 2,618 from holding Citigroup or generate 55.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.2% |
| Values | Daily Returns |
Citigroup vs. MOBILE FACTORY INC
Performance |
| Timeline |
| Citigroup |
| MOBILE FACTORY INC |
Citigroup and MOBILE FACTORY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and MOBILE FACTORY
The main advantage of trading using opposite Citigroup and MOBILE FACTORY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, MOBILE FACTORY 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 MOBILE FACTORY will offset losses from the drop in MOBILE FACTORY's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| MOBILE FACTORY vs. Sea Limited | MOBILE FACTORY vs. Electronic Arts | MOBILE FACTORY vs. NEXON Co | MOBILE FACTORY vs. NEXON 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Stocks Directory Find actively traded stocks across global markets | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| 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 |