Correlation Between Citigroup and Alliance Bancorp
Can any of the company-specific risk be diversified away by investing in both Citigroup and Alliance Bancorp 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 Alliance Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Alliance Bancorp, you can compare the effects of market volatilities on Citigroup and Alliance Bancorp 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 Alliance Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Alliance Bancorp.
Diversification Opportunities for Citigroup and Alliance Bancorp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Alliance is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Alliance Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alliance Bancorp 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 Alliance Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alliance Bancorp has no effect on the direction of Citigroup i.e., Citigroup and Alliance Bancorp go up and down completely randomly.
Pair Corralation between Citigroup and Alliance Bancorp
If you would invest 6,889 in Citigroup on September 14, 2024 and sell it today you would earn a total of 307.00 from holding Citigroup or generate 4.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Citigroup vs. Alliance Bancorp
Performance |
| Timeline |
| Citigroup |
| Alliance Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Alliance Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Alliance Bancorp
The main advantage of trading using opposite Citigroup and Alliance Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Alliance Bancorp 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 Alliance Bancorp will offset losses from the drop in Alliance Bancorp's long position.| Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal | Citigroup vs. Bank of Nova |
| Alliance Bancorp vs. Mesa Air Group | Alliance Bancorp vs. Sun Country Airlines | Alliance Bancorp vs. Ryanair Holdings PLC | Alliance Bancorp vs. Copa Holdings SA |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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