Correlation Between Citigroup and EirGenix
Can any of the company-specific risk be diversified away by investing in both Citigroup and EirGenix 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 EirGenix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and EirGenix, you can compare the effects of market volatilities on Citigroup and EirGenix 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 EirGenix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and EirGenix.
Diversification Opportunities for Citigroup and EirGenix
Very weak diversification
The 3 months correlation between Citigroup and EirGenix is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and EirGenix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EirGenix 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 EirGenix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EirGenix has no effect on the direction of Citigroup i.e., Citigroup and EirGenix go up and down completely randomly.
Pair Corralation between Citigroup and EirGenix
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.88 times more return on investment than EirGenix. However, Citigroup is 1.14 times less risky than EirGenix. It trades about 0.09 of its potential returns per unit of risk. EirGenix is currently generating about 0.02 per unit of risk. If you would invest 5,476 in Citigroup on September 1, 2024 and sell it today you would earn a total of 1,611 from holding Citigroup or generate 29.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.47% |
| Values | Daily Returns |
Citigroup vs. EirGenix
Performance |
| Timeline |
| Citigroup |
| EirGenix |
Citigroup and EirGenix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and EirGenix
The main advantage of trading using opposite Citigroup and EirGenix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, EirGenix 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 EirGenix will offset losses from the drop in EirGenix's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| EirGenix vs. Medigen Vaccine Biologics | EirGenix vs. OBI Pharma | EirGenix vs. TaiMed Biologics | EirGenix vs. Tanvex BioPharma |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |