Correlation Between Citigroup and Marketech International
Can any of the company-specific risk be diversified away by investing in both Citigroup and Marketech International 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 Marketech International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Marketech International Corp, you can compare the effects of market volatilities on Citigroup and Marketech International 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 Marketech International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Marketech International.
Diversification Opportunities for Citigroup and Marketech International
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Citigroup and Marketech is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Marketech International Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marketech International 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 Marketech International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marketech International has no effect on the direction of Citigroup i.e., Citigroup and Marketech International go up and down completely randomly.
Pair Corralation between Citigroup and Marketech International
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.53 times more return on investment than Marketech International. However, Citigroup is 1.53 times more volatile than Marketech International Corp. It trades about 0.23 of its potential returns per unit of risk. Marketech International Corp is currently generating about -0.06 per unit of risk. If you would invest 6,245 in Citigroup on August 25, 2024 and sell it today you would earn a total of 739.00 from holding Citigroup or generate 11.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Marketech International Corp
Performance |
| Timeline |
| Citigroup |
| Marketech International |
Citigroup and Marketech International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Marketech International
The main advantage of trading using opposite Citigroup and Marketech International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Marketech International 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 Marketech International will offset losses from the drop in Marketech International's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| Marketech International vs. Novatek Microelectronics Corp | Marketech International vs. Quanta Computer | Marketech International vs. United Microelectronics |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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