Correlation Between Citigroup and Athena Gold
Can any of the company-specific risk be diversified away by investing in both Citigroup and Athena Gold 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 Athena Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Athena Gold Corp, you can compare the effects of market volatilities on Citigroup and Athena Gold 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 Athena Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Athena Gold.
Diversification Opportunities for Citigroup and Athena Gold
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Citigroup and Athena is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Athena Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Athena Gold Corp 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 Athena Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Athena Gold Corp has no effect on the direction of Citigroup i.e., Citigroup and Athena Gold go up and down completely randomly.
Pair Corralation between Citigroup and Athena Gold
Taking into account the 90-day investment horizon Citigroup is expected to under-perform the Athena Gold. But the stock apears to be less risky and, when comparing its historical volatility, Citigroup is 4.76 times less risky than Athena Gold. The stock trades about -0.08 of its potential returns per unit of risk. The Athena Gold Corp is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 3.00 in Athena Gold Corp on November 28, 2024 and sell it today you would earn a total of 0.56 from holding Athena Gold Corp or generate 18.67% 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. Athena Gold Corp
Performance |
| Timeline |
| Citigroup |
| Athena Gold Corp |
Citigroup and Athena Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Athena Gold
The main advantage of trading using opposite Citigroup and Athena Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Athena Gold 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 Athena Gold will offset losses from the drop in Athena Gold's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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