Correlation Between Citigroup and Alpine Summit
Can any of the company-specific risk be diversified away by investing in both Citigroup and Alpine Summit 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 Alpine Summit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Alpine Summit Energy, you can compare the effects of market volatilities on Citigroup and Alpine Summit 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 Alpine Summit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Alpine Summit.
Diversification Opportunities for Citigroup and Alpine Summit
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Alpine is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Alpine Summit Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alpine Summit Energy 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 Alpine Summit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alpine Summit Energy has no effect on the direction of Citigroup i.e., Citigroup and Alpine Summit go up and down completely randomly.
Pair Corralation between Citigroup and Alpine Summit
If you would invest 6,079 in Citigroup on September 1, 2024 and sell it today you would earn a total of 1,008 from holding Citigroup or generate 16.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 0.79% |
| Values | Daily Returns |
Citigroup vs. Alpine Summit Energy
Performance |
| Timeline |
| Citigroup |
| Alpine Summit Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Alpine Summit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Alpine Summit
The main advantage of trading using opposite Citigroup and Alpine Summit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Alpine Summit 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 Alpine Summit will offset losses from the drop in Alpine Summit's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Alpine Summit vs. Permianville Royalty Trust | Alpine Summit vs. Gulf Coast | Alpine Summit vs. Cross Timbers Royalty | Alpine Summit vs. San Juan Basin |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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