Correlation Between Citigroup and Energenesis Biomedical
Can any of the company-specific risk be diversified away by investing in both Citigroup and Energenesis Biomedical 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 Energenesis Biomedical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Energenesis Biomedical Co, you can compare the effects of market volatilities on Citigroup and Energenesis Biomedical 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 Energenesis Biomedical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Energenesis Biomedical.
Diversification Opportunities for Citigroup and Energenesis Biomedical
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Citigroup and Energenesis is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Energenesis Biomedical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Energenesis Biomedical 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 Energenesis Biomedical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Energenesis Biomedical has no effect on the direction of Citigroup i.e., Citigroup and Energenesis Biomedical go up and down completely randomly.
Pair Corralation between Citigroup and Energenesis Biomedical
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.23 times more return on investment than Energenesis Biomedical. However, Citigroup is 1.23 times more volatile than Energenesis Biomedical Co. It trades about 0.26 of its potential returns per unit of risk. Energenesis Biomedical Co is currently generating about 0.29 per unit of risk. If you would invest 6,361 in Citigroup on September 1, 2024 and sell it today you would earn a total of 726.00 from holding Citigroup or generate 11.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Citigroup vs. Energenesis Biomedical Co
Performance |
| Timeline |
| Citigroup |
| Energenesis Biomedical |
Citigroup and Energenesis Biomedical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Energenesis Biomedical
The main advantage of trading using opposite Citigroup and Energenesis Biomedical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Energenesis Biomedical 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 Energenesis Biomedical will offset losses from the drop in Energenesis Biomedical's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Energenesis Biomedical vs. Taiwan Semiconductor Manufacturing | Energenesis Biomedical vs. Hon Hai Precision | Energenesis Biomedical vs. MediaTek | Energenesis Biomedical vs. Chunghwa Telecom 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 Positions Ratings module to 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.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| 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 | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |