Correlation Between Citigroup and Ablerex Electronics
Can any of the company-specific risk be diversified away by investing in both Citigroup and Ablerex Electronics 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 Ablerex Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Ablerex Electronics Co, you can compare the effects of market volatilities on Citigroup and Ablerex Electronics 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 Ablerex Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Ablerex Electronics.
Diversification Opportunities for Citigroup and Ablerex Electronics
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Ablerex is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Ablerex Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ablerex Electronics 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 Ablerex Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ablerex Electronics has no effect on the direction of Citigroup i.e., Citigroup and Ablerex Electronics go up and down completely randomly.
Pair Corralation between Citigroup and Ablerex Electronics
Taking into account the 90-day investment horizon Citigroup is expected to under-perform the Ablerex Electronics. In addition to that, Citigroup is 1.84 times more volatile than Ablerex Electronics Co. It trades about -0.04 of its total potential returns per unit of risk. Ablerex Electronics Co is currently generating about 0.2 per unit of volatility. If you would invest 4,330 in Ablerex Electronics Co on November 28, 2024 and sell it today you would earn a total of 130.00 from holding Ablerex Electronics Co or generate 3.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 77.27% |
| Values | Daily Returns |
Citigroup vs. Ablerex Electronics Co
Performance |
| Timeline |
| Citigroup |
| Ablerex Electronics |
Citigroup and Ablerex Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Ablerex Electronics
The main advantage of trading using opposite Citigroup and Ablerex Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Ablerex Electronics 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 Ablerex Electronics will offset losses from the drop in Ablerex Electronics' long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Ablerex Electronics vs. Hi Lai Foods Co | Ablerex Electronics vs. Louisa Professional Coffee | Ablerex Electronics vs. Standard Foods Corp | Ablerex Electronics vs. Unitech Electronics 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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