Correlation Between Citigroup and Mildef Crete
Can any of the company-specific risk be diversified away by investing in both Citigroup and Mildef Crete 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 Mildef Crete into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Mildef Crete, you can compare the effects of market volatilities on Citigroup and Mildef Crete 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 Mildef Crete. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Mildef Crete.
Diversification Opportunities for Citigroup and Mildef Crete
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Citigroup and Mildef is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Mildef Crete in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mildef Crete 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 Mildef Crete. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mildef Crete has no effect on the direction of Citigroup i.e., Citigroup and Mildef Crete go up and down completely randomly.
Pair Corralation between Citigroup and Mildef Crete
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.84 times more return on investment than Mildef Crete. However, Citigroup is 1.84 times more volatile than Mildef Crete. It trades about 0.23 of its potential returns per unit of risk. Mildef Crete is currently generating about -0.33 per unit of risk. If you would invest 6,360 in Citigroup on August 27, 2024 and sell it today you would earn a total of 624.00 from holding Citigroup or generate 9.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Mildef Crete
Performance |
| Timeline |
| Citigroup |
| Mildef Crete |
Citigroup and Mildef Crete Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Mildef Crete
The main advantage of trading using opposite Citigroup and Mildef Crete positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Mildef Crete 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 Mildef Crete will offset losses from the drop in Mildef Crete's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| Mildef Crete vs. Standard Foods Corp | Mildef Crete vs. Dadi Early Childhood Education | Mildef Crete vs. EnTie Commercial Bank | Mildef Crete vs. Fubon Financial Holding |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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