Correlation Between Citigroup and Leverage Shares
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By analyzing existing cross correlation between Citigroup and Leverage Shares 3x, you can compare the effects of market volatilities on Citigroup and Leverage Shares 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 Leverage Shares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Leverage Shares.
Diversification Opportunities for Citigroup and Leverage Shares
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Citigroup and Leverage is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Leverage Shares 3x in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leverage Shares 3x 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 Leverage Shares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leverage Shares 3x has no effect on the direction of Citigroup i.e., Citigroup and Leverage Shares go up and down completely randomly.
Pair Corralation between Citigroup and Leverage Shares
Taking into account the 90-day investment horizon Citigroup is expected to generate 5.21 times less return on investment than Leverage Shares. But when comparing it to its historical volatility, Citigroup is 2.58 times less risky than Leverage Shares. It trades about 0.06 of its potential returns per unit of risk. Leverage Shares 3x is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 4,659 in Leverage Shares 3x on September 3, 2024 and sell it today you would earn a total of 6,147 from holding Leverage Shares 3x or generate 131.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.65% |
| Values | Daily Returns |
Citigroup vs. Leverage Shares 3x
Performance |
| Timeline |
| Citigroup |
| Leverage Shares 3x |
Citigroup and Leverage Shares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Leverage Shares
The main advantage of trading using opposite Citigroup and Leverage Shares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Leverage Shares 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 Leverage Shares will offset losses from the drop in Leverage Shares' long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Leverage Shares vs. UBS Fund Solutions | Leverage Shares vs. Xtrackers II | Leverage Shares vs. Xtrackers Nikkei 225 | Leverage Shares vs. iShares VII PLC |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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