Correlation Between Citigroup and EURASIAN MINERALS
Can any of the company-specific risk be diversified away by investing in both Citigroup and EURASIAN MINERALS 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 EURASIAN MINERALS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and EURASIAN MINERALS, you can compare the effects of market volatilities on Citigroup and EURASIAN MINERALS 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 EURASIAN MINERALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and EURASIAN MINERALS.
Diversification Opportunities for Citigroup and EURASIAN MINERALS
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Citigroup and EURASIAN is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and EURASIAN MINERALS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EURASIAN MINERALS 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 EURASIAN MINERALS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EURASIAN MINERALS has no effect on the direction of Citigroup i.e., Citigroup and EURASIAN MINERALS go up and down completely randomly.
Pair Corralation between Citigroup and EURASIAN MINERALS
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.96 times more return on investment than EURASIAN MINERALS. However, Citigroup is 1.05 times less risky than EURASIAN MINERALS. It trades about 0.07 of its potential returns per unit of risk. EURASIAN MINERALS is currently generating about 0.0 per unit of risk. If you would invest 4,162 in Citigroup on September 19, 2024 and sell it today you would earn a total of 2,650 from holding Citigroup or generate 63.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.02% |
| Values | Daily Returns |
Citigroup vs. EURASIAN MINERALS
Performance |
| Timeline |
| Citigroup |
| EURASIAN MINERALS |
Citigroup and EURASIAN MINERALS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and EURASIAN MINERALS
The main advantage of trading using opposite Citigroup and EURASIAN MINERALS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, EURASIAN MINERALS 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 EURASIAN MINERALS will offset losses from the drop in EURASIAN MINERALS's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| EURASIAN MINERALS vs. MeVis Medical Solutions | EURASIAN MINERALS vs. Goosehead Insurance | EURASIAN MINERALS vs. Insurance Australia Group | EURASIAN MINERALS vs. AVITA Medical |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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