Correlation Between Citigroup and Alpha Alternative
Can any of the company-specific risk be diversified away by investing in both Citigroup and Alpha Alternative 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 Alpha Alternative into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Alpha Alternative Assets, you can compare the effects of market volatilities on Citigroup and Alpha Alternative 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 Alpha Alternative. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Alpha Alternative.
Diversification Opportunities for Citigroup and Alpha Alternative
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and Alpha is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Alpha Alternative Assets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alpha Alternative Assets 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 Alpha Alternative. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alpha Alternative Assets has no effect on the direction of Citigroup i.e., Citigroup and Alpha Alternative go up and down completely randomly.
Pair Corralation between Citigroup and Alpha Alternative
Taking into account the 90-day investment horizon Citigroup is expected to generate 6.68 times more return on investment than Alpha Alternative. However, Citigroup is 6.68 times more volatile than Alpha Alternative Assets. It trades about 0.26 of its potential returns per unit of risk. Alpha Alternative Assets is currently generating about -0.19 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Alpha Alternative Assets
Performance |
| Timeline |
| Citigroup |
| Alpha Alternative Assets |
Citigroup and Alpha Alternative Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Alpha Alternative
The main advantage of trading using opposite Citigroup and Alpha Alternative positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Alpha Alternative 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 Alpha Alternative will offset losses from the drop in Alpha Alternative's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Alpha Alternative vs. FT Vest Equity | Alpha Alternative vs. Zillow Group Class | Alpha Alternative vs. Northern Lights | Alpha Alternative vs. VanEck Vectors Moodys |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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