Correlation Between Citigroup and Acconeer
Can any of the company-specific risk be diversified away by investing in both Citigroup and Acconeer 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 Acconeer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Acconeer AB, you can compare the effects of market volatilities on Citigroup and Acconeer 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 Acconeer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Acconeer.
Diversification Opportunities for Citigroup and Acconeer
Pay attention - limited upside
The 3 months correlation between Citigroup and Acconeer is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Acconeer AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acconeer AB 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 Acconeer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acconeer AB has no effect on the direction of Citigroup i.e., Citigroup and Acconeer go up and down completely randomly.
Pair Corralation between Citigroup and Acconeer
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.73 times more return on investment than Acconeer. However, Citigroup is 1.38 times less risky than Acconeer. It trades about 0.25 of its potential returns per unit of risk. Acconeer AB is currently generating about -0.35 per unit of risk. If you would invest 6,360 in Citigroup on August 27, 2024 and sell it today you would earn a total of 715.00 from holding Citigroup or generate 11.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Acconeer AB
Performance |
| Timeline |
| Citigroup |
| Acconeer AB |
Citigroup and Acconeer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Acconeer
The main advantage of trading using opposite Citigroup and Acconeer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Acconeer 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 Acconeer will offset losses from the drop in Acconeer's long position.| Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal | Citigroup vs. Bank of Nova |
| Acconeer vs. Divio Technologies AB | Acconeer vs. XMReality AB | Acconeer vs. KABE Group AB | Acconeer vs. IAR Systems Group |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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