Correlation Between Citigroup and Amprius Technologies
Can any of the company-specific risk be diversified away by investing in both Citigroup and Amprius Technologies 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 Amprius Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Amprius Technologies, you can compare the effects of market volatilities on Citigroup and Amprius Technologies 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 Amprius Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Amprius Technologies.
Diversification Opportunities for Citigroup and Amprius Technologies
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Citigroup and Amprius is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Amprius Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amprius Technologies 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 Amprius Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amprius Technologies has no effect on the direction of Citigroup i.e., Citigroup and Amprius Technologies go up and down completely randomly.
Pair Corralation between Citigroup and Amprius Technologies
Taking into account the 90-day investment horizon Citigroup is expected to generate 4.78 times less return on investment than Amprius Technologies. But when comparing it to its historical volatility, Citigroup is 6.24 times less risky than Amprius Technologies. It trades about 0.25 of its potential returns per unit of risk. Amprius Technologies is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 139.00 in Amprius Technologies on August 27, 2024 and sell it today you would earn a total of 65.00 from holding Amprius Technologies or generate 46.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Amprius Technologies
Performance |
| Timeline |
| Citigroup |
| Amprius Technologies |
Citigroup and Amprius Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Amprius Technologies
The main advantage of trading using opposite Citigroup and Amprius Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Amprius Technologies 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 Amprius Technologies will offset losses from the drop in Amprius Technologies' long position.| Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal | Citigroup vs. Bank of Nova |
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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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