Correlation Between Citigroup and Avino Silver
Can any of the company-specific risk be diversified away by investing in both Citigroup and Avino Silver 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 Avino Silver into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Avino Silver Gold, you can compare the effects of market volatilities on Citigroup and Avino Silver 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 Avino Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Avino Silver.
Diversification Opportunities for Citigroup and Avino Silver
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Citigroup and Avino is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Avino Silver Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avino Silver Gold 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 Avino Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avino Silver Gold has no effect on the direction of Citigroup i.e., Citigroup and Avino Silver go up and down completely randomly.
Pair Corralation between Citigroup and Avino Silver
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.45 times more return on investment than Avino Silver. However, Citigroup is 2.24 times less risky than Avino Silver. It trades about 0.21 of its potential returns per unit of risk. Avino Silver Gold is currently generating about -0.19 per unit of risk. If you would invest 6,393 in Citigroup on August 31, 2024 and sell it today you would earn a total of 623.00 from holding Citigroup or generate 9.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Avino Silver Gold
Performance |
| Timeline |
| Citigroup |
| Avino Silver Gold |
Citigroup and Avino Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Avino Silver
The main advantage of trading using opposite Citigroup and Avino Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Avino Silver 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 Avino Silver will offset losses from the drop in Avino Silver's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Avino Silver vs. Hecla Mining | Avino Silver vs. SilverCrest Metals | Avino Silver vs. McEwen Mining | Avino Silver vs. Metalla Royalty Streaming |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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