Correlation Between Citigroup and TTY Biopharm
Can any of the company-specific risk be diversified away by investing in both Citigroup and TTY Biopharm 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 TTY Biopharm into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and TTY Biopharm Co, you can compare the effects of market volatilities on Citigroup and TTY Biopharm 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 TTY Biopharm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and TTY Biopharm.
Diversification Opportunities for Citigroup and TTY Biopharm
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Citigroup and TTY is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and TTY Biopharm Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TTY Biopharm 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 TTY Biopharm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TTY Biopharm has no effect on the direction of Citigroup i.e., Citigroup and TTY Biopharm go up and down completely randomly.
Pair Corralation between Citigroup and TTY Biopharm
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.11 times more return on investment than TTY Biopharm. However, Citigroup is 2.11 times more volatile than TTY Biopharm Co. It trades about 0.07 of its potential returns per unit of risk. TTY Biopharm Co is currently generating about -0.02 per unit of risk. If you would invest 4,134 in Citigroup on August 30, 2024 and sell it today you would earn a total of 2,882 from holding Citigroup or generate 69.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.77% |
| Values | Daily Returns |
Citigroup vs. TTY Biopharm Co
Performance |
| Timeline |
| Citigroup |
| TTY Biopharm |
Citigroup and TTY Biopharm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and TTY Biopharm
The main advantage of trading using opposite Citigroup and TTY Biopharm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, TTY Biopharm 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 TTY Biopharm will offset losses from the drop in TTY Biopharm's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| TTY Biopharm vs. Tehmag Foods | TTY Biopharm vs. Ibase Gaming | TTY Biopharm vs. Founding Construction Development | TTY Biopharm vs. Hunya Foods 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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