Correlation Between Citigroup and Alpha Healthcare
Can any of the company-specific risk be diversified away by investing in both Citigroup and Alpha Healthcare 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 Alpha Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Alpha Healthcare Acquisition, you can compare the effects of market volatilities on Citigroup and Alpha Healthcare 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 Alpha Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Alpha Healthcare.
Diversification Opportunities for Citigroup and Alpha Healthcare
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Citigroup and Alpha is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Alpha Healthcare Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alpha Healthcare Acq 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 Alpha Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alpha Healthcare Acq has no effect on the direction of Citigroup i.e., Citigroup and Alpha Healthcare go up and down completely randomly.
Pair Corralation between Citigroup and Alpha Healthcare
If you would invest 6,315 in Citigroup on September 2, 2024 and sell it today you would earn a total of 772.00 from holding Citigroup or generate 12.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Citigroup vs. Alpha Healthcare Acquisition
Performance |
| Timeline |
| Citigroup |
| Alpha Healthcare Acq |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Alpha Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Alpha Healthcare
The main advantage of trading using opposite Citigroup and Alpha Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Alpha Healthcare 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 Alpha Healthcare will offset losses from the drop in Alpha Healthcare'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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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