Correlation Between Citigroup and Alm Brand
Can any of the company-specific risk be diversified away by investing in both Citigroup and Alm Brand 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 Alm Brand into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Alm Brand Invest, you can compare the effects of market volatilities on Citigroup and Alm Brand 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 Alm Brand. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Alm Brand.
Diversification Opportunities for Citigroup and Alm Brand
Pay attention - limited upside
The 3 months correlation between Citigroup and Alm is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Alm Brand Invest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alm Brand Invest 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 Alm Brand. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alm Brand Invest has no effect on the direction of Citigroup i.e., Citigroup and Alm Brand go up and down completely randomly.
Pair Corralation between Citigroup and Alm Brand
If you would invest 6,360 in Citigroup on August 29, 2024 and sell it today you would earn a total of 615.00 from holding Citigroup or generate 9.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Citigroup vs. Alm Brand Invest
Performance |
| Timeline |
| Citigroup |
| Alm Brand Invest |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Alm Brand Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Alm Brand
The main advantage of trading using opposite Citigroup and Alm Brand positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Alm Brand 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 Alm Brand will offset losses from the drop in Alm Brand's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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