Correlation Between Citigroup and Ecomiam SA
Can any of the company-specific risk be diversified away by investing in both Citigroup and Ecomiam SA 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 Ecomiam SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Ecomiam SA, you can compare the effects of market volatilities on Citigroup and Ecomiam SA 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 Ecomiam SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Ecomiam SA.
Diversification Opportunities for Citigroup and Ecomiam SA
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Citigroup and Ecomiam is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Ecomiam SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ecomiam SA 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 Ecomiam SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ecomiam SA has no effect on the direction of Citigroup i.e., Citigroup and Ecomiam SA go up and down completely randomly.
Pair Corralation between Citigroup and Ecomiam SA
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.38 times more return on investment than Ecomiam SA. However, Citigroup is 2.63 times less risky than Ecomiam SA. It trades about 0.07 of its potential returns per unit of risk. Ecomiam SA is currently generating about -0.01 per unit of risk. If you would invest 4,145 in Citigroup on August 27, 2024 and sell it today you would earn a total of 2,839 from holding Citigroup or generate 68.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.22% |
| Values | Daily Returns |
Citigroup vs. Ecomiam SA
Performance |
| Timeline |
| Citigroup |
| Ecomiam SA |
Citigroup and Ecomiam SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Ecomiam SA
The main advantage of trading using opposite Citigroup and Ecomiam SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Ecomiam SA 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 Ecomiam SA will offset losses from the drop in Ecomiam SA's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| Ecomiam SA vs. Speed Rabbit Pizza | Ecomiam SA vs. Manitou BF SA | Ecomiam SA vs. Ossiam Minimum Variance | Ecomiam SA vs. Granite 3x LVMH |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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