Correlation Between Citigroup and AMIO
Can any of the company-specific risk be diversified away by investing in both Citigroup and AMIO 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 AMIO into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and AMIO, you can compare the effects of market volatilities on Citigroup and AMIO 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 AMIO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and AMIO.
Diversification Opportunities for Citigroup and AMIO
Very weak diversification
The 3 months correlation between Citigroup and AMIO is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and AMIO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMIO 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 AMIO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMIO has no effect on the direction of Citigroup i.e., Citigroup and AMIO go up and down completely randomly.
Pair Corralation between Citigroup and AMIO
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 | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Citigroup vs. AMIO
Performance |
| Timeline |
| Citigroup |
| AMIO |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and AMIO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and AMIO
The main advantage of trading using opposite Citigroup and AMIO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, AMIO 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 AMIO will offset losses from the drop in AMIO'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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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