Correlation Between Citigroup and Acadia Healthcare
Can any of the company-specific risk be diversified away by investing in both Citigroup and Acadia Healthcare 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 Acadia Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Acadia Healthcare, you can compare the effects of market volatilities on Citigroup and Acadia Healthcare 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 Acadia Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Acadia Healthcare.
Diversification Opportunities for Citigroup and Acadia Healthcare
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Acadia is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Acadia Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acadia Healthcare 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 Acadia Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acadia Healthcare has no effect on the direction of Citigroup i.e., Citigroup and Acadia Healthcare go up and down completely randomly.
Pair Corralation between Citigroup and Acadia Healthcare
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.58 times more return on investment than Acadia Healthcare. However, Citigroup is 1.72 times less risky than Acadia Healthcare. It trades about 0.08 of its potential returns per unit of risk. Acadia Healthcare is currently generating about -0.1 per unit of risk. If you would invest 5,415 in Citigroup on August 28, 2024 and sell it today you would earn a total of 1,660 from holding Citigroup or generate 30.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Acadia Healthcare
Performance |
| Timeline |
| Citigroup |
| Acadia Healthcare |
Citigroup and Acadia Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Acadia Healthcare
The main advantage of trading using opposite Citigroup and Acadia Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Acadia Healthcare 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 Acadia Healthcare will offset losses from the drop in Acadia Healthcare's long position.| Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal | Citigroup vs. Bank of Nova |
| Acadia Healthcare vs. Encompass Health Corp | Acadia Healthcare vs. Pennant Group | Acadia Healthcare vs. Select Medical Holdings | Acadia Healthcare vs. Addus HomeCare |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |