Correlation Between Citigroup and Ampire
Can any of the company-specific risk be diversified away by investing in both Citigroup and Ampire 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 Ampire into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Ampire Co, you can compare the effects of market volatilities on Citigroup and Ampire 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 Ampire. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Ampire.
Diversification Opportunities for Citigroup and Ampire
Good diversification
The 3 months correlation between Citigroup and Ampire is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Ampire Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ampire 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 Ampire. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ampire has no effect on the direction of Citigroup i.e., Citigroup and Ampire go up and down completely randomly.
Pair Corralation between Citigroup and Ampire
Taking into account the 90-day investment horizon Citigroup is expected to generate 3.45 times more return on investment than Ampire. However, Citigroup is 3.45 times more volatile than Ampire Co. It trades about 0.33 of its potential returns per unit of risk. Ampire Co is currently generating about -0.22 per unit of risk. If you would invest 6,235 in Citigroup on September 4, 2024 and sell it today you would earn a total of 904.00 from holding Citigroup or generate 14.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Citigroup vs. Ampire Co
Performance |
| Timeline |
| Citigroup |
| Ampire |
Citigroup and Ampire Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Ampire
The main advantage of trading using opposite Citigroup and Ampire positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Ampire 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 Ampire will offset losses from the drop in Ampire's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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