Correlation Between Citigroup and Antec
Can any of the company-specific risk be diversified away by investing in both Citigroup and Antec 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 Antec into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Antec Inc, you can compare the effects of market volatilities on Citigroup and Antec 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 Antec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Antec.
Diversification Opportunities for Citigroup and Antec
Good diversification
The 3 months correlation between Citigroup and Antec is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Antec Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Antec Inc 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 Antec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Antec Inc has no effect on the direction of Citigroup i.e., Citigroup and Antec go up and down completely randomly.
Pair Corralation between Citigroup and Antec
Taking into account the 90-day investment horizon Citigroup is expected to under-perform the Antec. But the stock apears to be less risky and, when comparing its historical volatility, Citigroup is 2.71 times less risky than Antec. The stock trades about -0.12 of its potential returns per unit of risk. The Antec Inc is currently generating about 0.46 of returns per unit of risk over similar time horizon. If you would invest 2,890 in Antec Inc on November 27, 2024 and sell it today you would earn a total of 1,220 from holding Antec Inc or generate 42.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 80.95% |
| Values | Daily Returns |
Citigroup vs. Antec Inc
Performance |
| Timeline |
| Citigroup |
| Antec Inc |
Citigroup and Antec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Antec
The main advantage of trading using opposite Citigroup and Antec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Antec 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 Antec will offset losses from the drop in Antec's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Antec vs. Arbor Technology | Antec vs. Central Reinsurance Corp | Antec vs. Min Aik Technology | Antec vs. STL Technology 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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