Correlation Between Citigroup and Asia Pacific
Can any of the company-specific risk be diversified away by investing in both Citigroup and Asia Pacific 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 Asia Pacific into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Asia Pacific Investment, you can compare the effects of market volatilities on Citigroup and Asia Pacific 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 Asia Pacific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Asia Pacific.
Diversification Opportunities for Citigroup and Asia Pacific
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Citigroup and Asia is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Asia Pacific Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asia Pacific Investment 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 Asia Pacific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asia Pacific Investment has no effect on the direction of Citigroup i.e., Citigroup and Asia Pacific go up and down completely randomly.
Pair Corralation between Citigroup and Asia Pacific
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.4 times more return on investment than Asia Pacific. However, Citigroup is 2.49 times less risky than Asia Pacific. It trades about 0.09 of its potential returns per unit of risk. Asia Pacific Investment is currently generating about -0.02 per unit of risk. If you would invest 4,224 in Citigroup on August 26, 2024 and sell it today you would earn a total of 2,760 from holding Citigroup or generate 65.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.75% |
| Values | Daily Returns |
Citigroup vs. Asia Pacific Investment
Performance |
| Timeline |
| Citigroup |
| Asia Pacific Investment |
Citigroup and Asia Pacific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Asia Pacific
The main advantage of trading using opposite Citigroup and Asia Pacific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Asia Pacific 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 Asia Pacific will offset losses from the drop in Asia Pacific's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| Asia Pacific vs. FIT INVEST JSC | Asia Pacific vs. Damsan JSC | Asia Pacific vs. An Phat Plastic | Asia Pacific vs. APG Securities Joint |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |