Correlation Between Citigroup and BNP Paribas
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By analyzing existing cross correlation between Citigroup and BNP Paribas Easy, you can compare the effects of market volatilities on Citigroup and BNP Paribas 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 BNP Paribas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and BNP Paribas.
Diversification Opportunities for Citigroup and BNP Paribas
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Citigroup and BNP is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and BNP Paribas Easy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BNP Paribas Easy 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 BNP Paribas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BNP Paribas Easy has no effect on the direction of Citigroup i.e., Citigroup and BNP Paribas go up and down completely randomly.
Pair Corralation between Citigroup and BNP Paribas
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.1 times more return on investment than BNP Paribas. However, Citigroup is 2.1 times more volatile than BNP Paribas Easy. It trades about 0.26 of its potential returns per unit of risk. BNP Paribas Easy is currently generating about 0.13 per unit of risk. If you would invest 6,361 in Citigroup on September 1, 2024 and sell it today you would earn a total of 726.00 from holding Citigroup or generate 11.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 91.3% |
| Values | Daily Returns |
Citigroup vs. BNP Paribas Easy
Performance |
| Timeline |
| Citigroup |
| BNP Paribas Easy |
Citigroup and BNP Paribas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and BNP Paribas
The main advantage of trading using opposite Citigroup and BNP Paribas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, BNP Paribas 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 BNP Paribas will offset losses from the drop in BNP Paribas' long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| BNP Paribas vs. BNP Paribas Easy | BNP Paribas vs. BNP Paribas Easy | BNP Paribas vs. BNP Paribas Easy | BNP Paribas vs. BNP Paribas Easy |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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