Correlation Between Citigroup and Koninklijke Ahold
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By analyzing existing cross correlation between Citigroup and Koninklijke Ahold Delhaize, you can compare the effects of market volatilities on Citigroup and Koninklijke Ahold 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 Koninklijke Ahold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Koninklijke Ahold.
Diversification Opportunities for Citigroup and Koninklijke Ahold
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and Koninklijke is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Koninklijke Ahold Delhaize in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koninklijke Ahold 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 Koninklijke Ahold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koninklijke Ahold has no effect on the direction of Citigroup i.e., Citigroup and Koninklijke Ahold go up and down completely randomly.
Pair Corralation between Citigroup and Koninklijke Ahold
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.03 times more return on investment than Koninklijke Ahold. However, Citigroup is 1.03 times more volatile than Koninklijke Ahold Delhaize. It trades about 0.07 of its potential returns per unit of risk. Koninklijke Ahold Delhaize is currently generating about 0.04 per unit of risk. If you would invest 4,293 in Citigroup on September 3, 2024 and sell it today you would earn a total of 2,794 from holding Citigroup or generate 65.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.61% |
| Values | Daily Returns |
Citigroup vs. Koninklijke Ahold Delhaize
Performance |
| Timeline |
| Citigroup |
| Koninklijke Ahold |
Citigroup and Koninklijke Ahold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Koninklijke Ahold
The main advantage of trading using opposite Citigroup and Koninklijke Ahold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Koninklijke Ahold 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 Koninklijke Ahold will offset losses from the drop in Koninklijke Ahold's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Koninklijke Ahold vs. Seven i Holdings | Koninklijke Ahold vs. AHOLD DELHAIADR16 EO 25 | Koninklijke Ahold vs. Loblaw Companies Limited | Koninklijke Ahold vs. TESCO PLC LS 0633333 |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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