Correlation Between Citigroup and Altshuler Shaham
Can any of the company-specific risk be diversified away by investing in both Citigroup and Altshuler Shaham 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 Altshuler Shaham into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Altshuler Shaham Financial, you can compare the effects of market volatilities on Citigroup and Altshuler Shaham 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 Altshuler Shaham. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Altshuler Shaham.
Diversification Opportunities for Citigroup and Altshuler Shaham
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Citigroup and Altshuler is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Altshuler Shaham Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altshuler Shaham Fin 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 Altshuler Shaham. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altshuler Shaham Fin has no effect on the direction of Citigroup i.e., Citigroup and Altshuler Shaham go up and down completely randomly.
Pair Corralation between Citigroup and Altshuler Shaham
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.54 times more return on investment than Altshuler Shaham. However, Citigroup is 1.85 times less risky than Altshuler Shaham. It trades about 0.19 of its potential returns per unit of risk. Altshuler Shaham Financial is currently generating about -0.44 per unit of risk. If you would invest 6,900 in Citigroup on September 18, 2024 and sell it today you would earn a total of 212.00 from holding Citigroup or generate 3.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 85.71% |
| Values | Daily Returns |
Citigroup vs. Altshuler Shaham Financial
Performance |
| Timeline |
| Citigroup |
| Altshuler Shaham Fin |
Citigroup and Altshuler Shaham Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Altshuler Shaham
The main advantage of trading using opposite Citigroup and Altshuler Shaham positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Altshuler Shaham 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 Altshuler Shaham will offset losses from the drop in Altshuler Shaham's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Altshuler Shaham vs. Meitav Dash Investments | Altshuler Shaham vs. Mivtach Shamir | Altshuler Shaham vs. YD More Investments | Altshuler Shaham vs. Analyst IMS Investment |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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