Correlation Between Citigroup and Angkor Resources
Can any of the company-specific risk be diversified away by investing in both Citigroup and Angkor Resources 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 Angkor Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Angkor Resources Corp, you can compare the effects of market volatilities on Citigroup and Angkor Resources 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 Angkor Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Angkor Resources.
Diversification Opportunities for Citigroup and Angkor Resources
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Citigroup and Angkor is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Angkor Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Angkor Resources Corp 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 Angkor Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Angkor Resources Corp has no effect on the direction of Citigroup i.e., Citigroup and Angkor Resources go up and down completely randomly.
Pair Corralation between Citigroup and Angkor Resources
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.68 times less return on investment than Angkor Resources. But when comparing it to its historical volatility, Citigroup is 4.25 times less risky than Angkor Resources. It trades about 0.09 of its potential returns per unit of risk. Angkor Resources Corp is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 9.00 in Angkor Resources Corp on August 27, 2024 and sell it today you would earn a total of 0.50 from holding Angkor Resources Corp or generate 5.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
Citigroup vs. Angkor Resources Corp
Performance |
| Timeline |
| Citigroup |
| Angkor Resources Corp |
Citigroup and Angkor Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Angkor Resources
The main advantage of trading using opposite Citigroup and Angkor Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Angkor Resources 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 Angkor Resources will offset losses from the drop in Angkor Resources' long position.| Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal | Citigroup vs. Bank of Nova |
| Angkor Resources vs. First Majestic Silver | Angkor Resources vs. Ivanhoe Energy | Angkor Resources vs. Orezone Gold Corp |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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