Correlation Between Citigroup and Arcturus Therapeutics
Can any of the company-specific risk be diversified away by investing in both Citigroup and Arcturus Therapeutics 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 Arcturus Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Arcturus Therapeutics Holdings, you can compare the effects of market volatilities on Citigroup and Arcturus Therapeutics 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 Arcturus Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Arcturus Therapeutics.
Diversification Opportunities for Citigroup and Arcturus Therapeutics
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Citigroup and Arcturus is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Arcturus Therapeutics Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arcturus Therapeutics 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 Arcturus Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arcturus Therapeutics has no effect on the direction of Citigroup i.e., Citigroup and Arcturus Therapeutics go up and down completely randomly.
Pair Corralation between Citigroup and Arcturus Therapeutics
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.35 times more return on investment than Arcturus Therapeutics. However, Citigroup is 2.86 times less risky than Arcturus Therapeutics. It trades about 0.08 of its potential returns per unit of risk. Arcturus Therapeutics Holdings is currently generating about 0.03 per unit of risk. If you would invest 4,492 in Citigroup on November 28, 2024 and sell it today you would earn a total of 3,322 from holding Citigroup or generate 73.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Arcturus Therapeutics Holdings
Performance |
| Timeline |
| Citigroup |
| Arcturus Therapeutics |
Citigroup and Arcturus Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Arcturus Therapeutics
The main advantage of trading using opposite Citigroup and Arcturus Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Arcturus Therapeutics 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 Arcturus Therapeutics will offset losses from the drop in Arcturus Therapeutics' long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Arcturus Therapeutics vs. 89bio Inc | Arcturus Therapeutics vs. Madrigal Pharmaceuticals | Arcturus Therapeutics vs. Pliant Therapeutics | Arcturus Therapeutics vs. Arcellx |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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