Correlation Between Citigroup and Agfa Gevaert
Can any of the company-specific risk be diversified away by investing in both Citigroup and Agfa Gevaert 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 Agfa Gevaert into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Agfa Gevaert NV, you can compare the effects of market volatilities on Citigroup and Agfa Gevaert 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 Agfa Gevaert. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Agfa Gevaert.
Diversification Opportunities for Citigroup and Agfa Gevaert
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Agfa is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Agfa Gevaert NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agfa Gevaert NV 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 Agfa Gevaert. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agfa Gevaert NV has no effect on the direction of Citigroup i.e., Citigroup and Agfa Gevaert go up and down completely randomly.
Pair Corralation between Citigroup and Agfa Gevaert
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.1 times more return on investment than Agfa Gevaert. However, Citigroup is 9.92 times less risky than Agfa Gevaert. It trades about 0.22 of its potential returns per unit of risk. Agfa Gevaert NV is currently generating about -0.21 per unit of risk. If you would invest 6,980 in Citigroup on September 12, 2024 and sell it today you would earn a total of 270.00 from holding Citigroup or generate 3.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Citigroup vs. Agfa Gevaert NV
Performance |
| Timeline |
| Citigroup |
| Agfa Gevaert NV |
Citigroup and Agfa Gevaert Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Agfa Gevaert
The main advantage of trading using opposite Citigroup and Agfa Gevaert positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Agfa Gevaert 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 Agfa Gevaert will offset losses from the drop in Agfa Gevaert's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Agfa Gevaert vs. Enerpac Tool Group | Agfa Gevaert vs. Omega Flex | Agfa Gevaert vs. Luxfer Holdings PLC | Agfa Gevaert vs. Gorman Rupp |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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