Correlation Between Citigroup and Ab Global
Can any of the company-specific risk be diversified away by investing in both Citigroup and Ab Global 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 Ab Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Ab Global Bond, you can compare the effects of market volatilities on Citigroup and Ab Global 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 Ab Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Ab Global.
Diversification Opportunities for Citigroup and Ab Global
Pay attention - limited upside
The 3 months correlation between Citigroup and ANAYX is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Ab Global Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Global Bond 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 Ab Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Global Bond has no effect on the direction of Citigroup i.e., Citigroup and Ab Global go up and down completely randomly.
Pair Corralation between Citigroup and Ab Global
Taking into account the 90-day investment horizon Citigroup is expected to generate 6.22 times more return on investment than Ab Global. However, Citigroup is 6.22 times more volatile than Ab Global Bond. It trades about 0.08 of its potential returns per unit of risk. Ab Global Bond is currently generating about 0.05 per unit of risk. If you would invest 5,415 in Citigroup on August 28, 2024 and sell it today you would earn a total of 1,660 from holding Citigroup or generate 30.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Ab Global Bond
Performance |
| Timeline |
| Citigroup |
| Ab Global Bond |
Citigroup and Ab Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Ab Global
The main advantage of trading using opposite Citigroup and Ab Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Ab Global 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 Ab Global will offset losses from the drop in Ab Global's long position.| Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal | Citigroup vs. Bank of Nova |
| Ab Global vs. Icon Financial Fund | Ab Global vs. Davis Financial Fund | Ab Global vs. Royce Global Financial | Ab Global vs. Prudential Jennison Financial |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |