Correlation Between Citigroup and Anzu Special
Can any of the company-specific risk be diversified away by investing in both Citigroup and Anzu Special 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 Anzu Special into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Anzu Special Acquisition, you can compare the effects of market volatilities on Citigroup and Anzu Special 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 Anzu Special. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Anzu Special.
Diversification Opportunities for Citigroup and Anzu Special
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Citigroup and Anzu is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Anzu Special Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anzu Special Acquisition 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 Anzu Special. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anzu Special Acquisition has no effect on the direction of Citigroup i.e., Citigroup and Anzu Special go up and down completely randomly.
Pair Corralation between Citigroup and Anzu Special
If you would invest 6,064 in Citigroup on September 3, 2024 and sell it today you would earn a total of 1,023 from holding Citigroup or generate 16.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 0.8% |
| Values | Daily Returns |
Citigroup vs. Anzu Special Acquisition
Performance |
| Timeline |
| Citigroup |
| Anzu Special Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Anzu Special Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Anzu Special
The main advantage of trading using opposite Citigroup and Anzu Special positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Anzu Special 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 Anzu Special will offset losses from the drop in Anzu Special's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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