Correlation Between Citigroup and Apollo Strategic
Can any of the company-specific risk be diversified away by investing in both Citigroup and Apollo Strategic 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 Apollo Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Apollo Strategic Growth, you can compare the effects of market volatilities on Citigroup and Apollo Strategic 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 Apollo Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Apollo Strategic.
Diversification Opportunities for Citigroup and Apollo Strategic
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Citigroup and Apollo is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Apollo Strategic Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Strategic Growth 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 Apollo Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollo Strategic Growth has no effect on the direction of Citigroup i.e., Citigroup and Apollo Strategic go up and down completely randomly.
Pair Corralation between Citigroup and Apollo Strategic
If you would invest 6,064 in Citigroup on September 3, 2024 and sell it today you would earn a total of 1,075 from holding Citigroup or generate 17.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 0.8% |
| Values | Daily Returns |
Citigroup vs. Apollo Strategic Growth
Performance |
| Timeline |
| Citigroup |
| Apollo Strategic Growth |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Apollo Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Apollo Strategic
The main advantage of trading using opposite Citigroup and Apollo Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Apollo Strategic 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 Apollo Strategic will offset losses from the drop in Apollo Strategic'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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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