Correlation Between Citigroup and Asuransi Ramayana
Can any of the company-specific risk be diversified away by investing in both Citigroup and Asuransi Ramayana 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 Asuransi Ramayana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Asuransi Ramayana Tbk, you can compare the effects of market volatilities on Citigroup and Asuransi Ramayana 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 Asuransi Ramayana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Asuransi Ramayana.
Diversification Opportunities for Citigroup and Asuransi Ramayana
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Asuransi is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Asuransi Ramayana Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asuransi Ramayana Tbk 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 Asuransi Ramayana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asuransi Ramayana Tbk has no effect on the direction of Citigroup i.e., Citigroup and Asuransi Ramayana go up and down completely randomly.
Pair Corralation between Citigroup and Asuransi Ramayana
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.49 times more return on investment than Asuransi Ramayana. However, Citigroup is 1.49 times more volatile than Asuransi Ramayana Tbk. It trades about 0.13 of its potential returns per unit of risk. Asuransi Ramayana Tbk is currently generating about -0.03 per unit of risk. If you would invest 4,053 in Citigroup on September 1, 2024 and sell it today you would earn a total of 3,034 from holding Citigroup or generate 74.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.54% |
| Values | Daily Returns |
Citigroup vs. Asuransi Ramayana Tbk
Performance |
| Timeline |
| Citigroup |
| Asuransi Ramayana Tbk |
Citigroup and Asuransi Ramayana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Asuransi Ramayana
The main advantage of trading using opposite Citigroup and Asuransi Ramayana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Asuransi Ramayana 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 Asuransi Ramayana will offset losses from the drop in Asuransi Ramayana's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Asuransi Ramayana vs. Asuransi Bintang Tbk | Asuransi Ramayana vs. Asuransi Dayin Mitra | Asuransi Ramayana vs. Asuransi Bina Dana | Asuransi Ramayana vs. Asuransi Jasa Tania |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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