Correlation Between Citigroup and Healthconn Corp
Can any of the company-specific risk be diversified away by investing in both Citigroup and Healthconn Corp 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 Healthconn Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Healthconn Corp, you can compare the effects of market volatilities on Citigroup and Healthconn Corp 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 Healthconn Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Healthconn Corp.
Diversification Opportunities for Citigroup and Healthconn Corp
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Citigroup and Healthconn is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Healthconn Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Healthconn Corp 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 Healthconn Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Healthconn Corp has no effect on the direction of Citigroup i.e., Citigroup and Healthconn Corp go up and down completely randomly.
Pair Corralation between Citigroup and Healthconn Corp
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.69 times more return on investment than Healthconn Corp. However, Citigroup is 1.44 times less risky than Healthconn Corp. It trades about 0.05 of its potential returns per unit of risk. Healthconn Corp is currently generating about -0.04 per unit of risk. If you would invest 4,415 in Citigroup on January 18, 2025 and sell it today you would earn a total of 1,910 from holding Citigroup or generate 43.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.57% |
| Values | Daily Returns |
Citigroup vs. Healthconn Corp
Performance |
| Timeline |
| Citigroup |
| Healthconn Corp |
Citigroup and Healthconn Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Healthconn Corp
The main advantage of trading using opposite Citigroup and Healthconn Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Healthconn Corp 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 Healthconn Corp will offset losses from the drop in Healthconn Corp's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Healthconn Corp vs. YuantaP shares Taiwan Top | Healthconn Corp vs. YuantaP shares Taiwan Mid Cap | Healthconn Corp vs. YuantaP shares Taiwan Electronics | Healthconn Corp vs. Fubon MSCI Taiwan |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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