Correlation Between Citigroup and Airlie Australian
Can any of the company-specific risk be diversified away by investing in both Citigroup and Airlie Australian 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 Airlie Australian into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Airlie Australian Share, you can compare the effects of market volatilities on Citigroup and Airlie Australian 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 Airlie Australian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Airlie Australian.
Diversification Opportunities for Citigroup and Airlie Australian
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and Airlie is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Airlie Australian Share in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Airlie Australian Share 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 Airlie Australian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Airlie Australian Share has no effect on the direction of Citigroup i.e., Citigroup and Airlie Australian go up and down completely randomly.
Pair Corralation between Citigroup and Airlie Australian
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.63 times more return on investment than Airlie Australian. However, Citigroup is 2.63 times more volatile than Airlie Australian Share. It trades about 0.07 of its potential returns per unit of risk. Airlie Australian Share is currently generating about 0.08 per unit of risk. If you would invest 6,117 in Citigroup on August 29, 2024 and sell it today you would earn a total of 899.00 from holding Citigroup or generate 14.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Citigroup vs. Airlie Australian Share
Performance |
| Timeline |
| Citigroup |
| Airlie Australian Share |
Citigroup and Airlie Australian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Airlie Australian
The main advantage of trading using opposite Citigroup and Airlie Australian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Airlie Australian 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 Airlie Australian will offset losses from the drop in Airlie Australian's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Airlie Australian vs. iShares MSCI Emerging | Airlie Australian vs. Global X Hydrogen | Airlie Australian vs. Janus Henderson Sustainable | Airlie Australian vs. JPMorgan Equity Premium |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |