Correlation Between Citigroup and Affimed NV
Can any of the company-specific risk be diversified away by investing in both Citigroup and Affimed NV 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 Affimed NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Affimed NV, you can compare the effects of market volatilities on Citigroup and Affimed NV 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 Affimed NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Affimed NV.
Diversification Opportunities for Citigroup and Affimed NV
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and Affimed is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Affimed NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Affimed 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 Affimed NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Affimed NV has no effect on the direction of Citigroup i.e., Citigroup and Affimed NV go up and down completely randomly.
Pair Corralation between Citigroup and Affimed NV
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.36 times more return on investment than Affimed NV. However, Citigroup is 2.75 times less risky than Affimed NV. It trades about 0.21 of its potential returns per unit of risk. Affimed NV is currently generating about -0.1 per unit of risk. If you would invest 6,393 in Citigroup on August 31, 2024 and sell it today you would earn a total of 623.00 from holding Citigroup or generate 9.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Affimed NV
Performance |
| Timeline |
| Citigroup |
| Affimed NV |
Citigroup and Affimed NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Affimed NV
The main advantage of trading using opposite Citigroup and Affimed NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Affimed NV 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 Affimed NV will offset losses from the drop in Affimed NV's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Affimed NV vs. Pieris Pharmaceuticals | Affimed NV vs. ADC Therapeutics SA | Affimed NV vs. Agenus Inc | Affimed NV vs. X4 Pharmaceuticals |
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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