Correlation Between Citigroup and Armada Hflr
Can any of the company-specific risk be diversified away by investing in both Citigroup and Armada Hflr 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 Armada Hflr into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Armada Hflr Pr, you can compare the effects of market volatilities on Citigroup and Armada Hflr 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 Armada Hflr. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Armada Hflr.
Diversification Opportunities for Citigroup and Armada Hflr
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Citigroup and Armada is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Armada Hflr Pr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Armada Hflr Pr 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 Armada Hflr. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Armada Hflr Pr has no effect on the direction of Citigroup i.e., Citigroup and Armada Hflr go up and down completely randomly.
Pair Corralation between Citigroup and Armada Hflr
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.18 times more return on investment than Armada Hflr. However, Citigroup is 1.18 times more volatile than Armada Hflr Pr. It trades about 0.16 of its potential returns per unit of risk. Armada Hflr Pr is currently generating about -0.11 per unit of risk. If you would invest 6,092 in Citigroup on November 2, 2024 and sell it today you would earn a total of 2,094 from holding Citigroup or generate 34.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Armada Hflr Pr
Performance |
| Timeline |
| Citigroup |
| Armada Hflr Pr |
Citigroup and Armada Hflr Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Armada Hflr
The main advantage of trading using opposite Citigroup and Armada Hflr positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Armada Hflr 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 Armada Hflr will offset losses from the drop in Armada Hflr's long position.| Citigroup vs. Royal Bank of | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Canadian Imperial Bank |
| Armada Hflr vs. Modiv Inc | Armada Hflr vs. Precinct Properties New | Armada Hflr vs. Global Net Lease | Armada Hflr vs. NexPoint Diversified Real |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Stocks Directory Find actively traded stocks across global markets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |