Correlation Between Citigroup and Nichidenbo Corp
Can any of the company-specific risk be diversified away by investing in both Citigroup and Nichidenbo Corp 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 Nichidenbo Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Nichidenbo Corp, you can compare the effects of market volatilities on Citigroup and Nichidenbo Corp 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 Nichidenbo Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Nichidenbo Corp.
Diversification Opportunities for Citigroup and Nichidenbo Corp
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Citigroup and Nichidenbo is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Nichidenbo Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nichidenbo Corp 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 Nichidenbo Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nichidenbo Corp has no effect on the direction of Citigroup i.e., Citigroup and Nichidenbo Corp go up and down completely randomly.
Pair Corralation between Citigroup and Nichidenbo Corp
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.13 times more return on investment than Nichidenbo Corp. However, Citigroup is 1.13 times more volatile than Nichidenbo Corp. It trades about 0.07 of its potential returns per unit of risk. Nichidenbo Corp is currently generating about -0.26 per unit of risk. If you would invest 7,196 in Citigroup on October 12, 2024 and sell it today you would earn a total of 130.00 from holding Citigroup or generate 1.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.24% |
| Values | Daily Returns |
Citigroup vs. Nichidenbo Corp
Performance |
| Timeline |
| Citigroup |
| Nichidenbo Corp |
Citigroup and Nichidenbo Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Nichidenbo Corp
The main advantage of trading using opposite Citigroup and Nichidenbo Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Nichidenbo Corp 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 Nichidenbo Corp will offset losses from the drop in Nichidenbo Corp's long position.| Citigroup vs. Royal Bank of | Citigroup vs. JPMorgan Chase Co | Citigroup vs. Nu Holdings | Citigroup vs. Canadian Imperial Bank |
| Nichidenbo Corp vs. Holy Stone Enterprise | Nichidenbo Corp vs. Walsin Technology Corp | Nichidenbo Corp vs. Yageo Corp | Nichidenbo Corp vs. HannStar Board Corp |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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