Correlation Between Citigroup and 3R Games
Can any of the company-specific risk be diversified away by investing in both Citigroup and 3R Games 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 3R Games into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and 3R Games SA, you can compare the effects of market volatilities on Citigroup and 3R Games 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 3R Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and 3R Games.
Diversification Opportunities for Citigroup and 3R Games
Good diversification
The 3 months correlation between Citigroup and 3RG is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and 3R Games SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 3R Games SA 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 3R Games. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 3R Games SA has no effect on the direction of Citigroup i.e., Citigroup and 3R Games go up and down completely randomly.
Pair Corralation between Citigroup and 3R Games
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.64 times more return on investment than 3R Games. However, Citigroup is 1.57 times less risky than 3R Games. It trades about 0.07 of its potential returns per unit of risk. 3R Games SA is currently generating about -0.01 per unit of risk. If you would invest 6,079 in Citigroup on September 1, 2024 and sell it today you would earn a total of 1,008 from holding Citigroup or generate 16.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Citigroup vs. 3R Games SA
Performance |
| Timeline |
| Citigroup |
| 3R Games SA |
Citigroup and 3R Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and 3R Games
The main advantage of trading using opposite Citigroup and 3R Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, 3R Games 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 3R Games will offset losses from the drop in 3R Games' long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| 3R Games vs. Quantum Software SA | 3R Games vs. GreenX Metals | 3R Games vs. UniCredit SpA | 3R Games vs. SOFTWARE MANSION SPOLKA |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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