Correlation Between Citigroup and Ault Disruptive
Can any of the company-specific risk be diversified away by investing in both Citigroup and Ault Disruptive 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 Ault Disruptive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Ault Disruptive Technologies, you can compare the effects of market volatilities on Citigroup and Ault Disruptive 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 Ault Disruptive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Ault Disruptive.
Diversification Opportunities for Citigroup and Ault Disruptive
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Ault is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Ault Disruptive Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ault Disruptive Tech 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 Ault Disruptive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ault Disruptive Tech has no effect on the direction of Citigroup i.e., Citigroup and Ault Disruptive go up and down completely randomly.
Pair Corralation between Citigroup and Ault Disruptive
If you would invest 6,315 in Citigroup on September 2, 2024 and sell it today you would earn a total of 772.00 from holding Citigroup or generate 12.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Citigroup vs. Ault Disruptive Technologies
Performance |
| Timeline |
| Citigroup |
| Ault Disruptive Tech |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Ault Disruptive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Ault Disruptive
The main advantage of trading using opposite Citigroup and Ault Disruptive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Ault Disruptive 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 Ault Disruptive will offset losses from the drop in Ault Disruptive's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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