Correlation Between Citigroup and ANZ Group
Can any of the company-specific risk be diversified away by investing in both Citigroup and ANZ Group 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 ANZ Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and ANZ Group Holdings, you can compare the effects of market volatilities on Citigroup and ANZ Group 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 ANZ Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and ANZ Group.
Diversification Opportunities for Citigroup and ANZ Group
Very good diversification
The 3 months correlation between Citigroup and ANZ is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and ANZ Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANZ Group Holdings 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 ANZ Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANZ Group Holdings has no effect on the direction of Citigroup i.e., Citigroup and ANZ Group go up and down completely randomly.
Pair Corralation between Citigroup and ANZ Group
If you would invest 6,133 in Citigroup on August 28, 2024 and sell it today you would earn a total of 942.00 from holding Citigroup or generate 15.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 2.38% |
| Values | Daily Returns |
Citigroup vs. ANZ Group Holdings
Performance |
| Timeline |
| Citigroup |
| ANZ Group Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and ANZ Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and ANZ Group
The main advantage of trading using opposite Citigroup and ANZ Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, ANZ Group 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 ANZ Group will offset losses from the drop in ANZ Group's long position.| Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal | Citigroup vs. Bank of Nova |
| ANZ Group vs. Centessa Pharmaceuticals PLC | ANZ Group vs. Lipocine | ANZ Group vs. Olympic Steel | ANZ Group vs. Apogee Therapeutics, Common |
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 Correlations module to find global opportunities by holding instruments from different markets.
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