Correlation Between Citigroup and Montage Technology
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By analyzing existing cross correlation between Citigroup and Montage Technology Co, you can compare the effects of market volatilities on Citigroup and Montage Technology 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 Montage Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Montage Technology.
Diversification Opportunities for Citigroup and Montage Technology
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Citigroup and Montage is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Montage Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Montage Technology 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 Montage Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Montage Technology has no effect on the direction of Citigroup i.e., Citigroup and Montage Technology go up and down completely randomly.
Pair Corralation between Citigroup and Montage Technology
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.53 times more return on investment than Montage Technology. However, Citigroup is 1.9 times less risky than Montage Technology. It trades about 0.06 of its potential returns per unit of risk. Montage Technology Co is currently generating about 0.02 per unit of risk. If you would invest 4,790 in Citigroup on October 12, 2024 and sell it today you would earn a total of 2,536 from holding Citigroup or generate 52.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 96.36% |
| Values | Daily Returns |
Citigroup vs. Montage Technology Co
Performance |
| Timeline |
| Citigroup |
| Montage Technology |
Citigroup and Montage Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Montage Technology
The main advantage of trading using opposite Citigroup and Montage Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Montage Technology 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 Montage Technology will offset losses from the drop in Montage Technology's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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