Correlation Between Citigroup and Antibiotice
Can any of the company-specific risk be diversified away by investing in both Citigroup and Antibiotice 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 Antibiotice into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Antibiotice Ia, you can compare the effects of market volatilities on Citigroup and Antibiotice 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 Antibiotice. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Antibiotice.
Diversification Opportunities for Citigroup and Antibiotice
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Citigroup and Antibiotice is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Antibiotice Ia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Antibiotice Ia 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 Antibiotice. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Antibiotice Ia has no effect on the direction of Citigroup i.e., Citigroup and Antibiotice go up and down completely randomly.
Pair Corralation between Citigroup and Antibiotice
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.24 times less return on investment than Antibiotice. But when comparing it to its historical volatility, Citigroup is 1.28 times less risky than Antibiotice. It trades about 0.07 of its potential returns per unit of risk. Antibiotice Ia is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 135.00 in Antibiotice Ia on January 23, 2025 and sell it today you would earn a total of 74.00 from holding Antibiotice Ia or generate 54.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 97.99% |
| Values | Daily Returns |
Citigroup vs. Antibiotice Ia
Performance |
| Timeline |
| Citigroup |
| Antibiotice Ia |
Citigroup and Antibiotice Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Antibiotice
The main advantage of trading using opposite Citigroup and Antibiotice positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Antibiotice 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 Antibiotice will offset losses from the drop in Antibiotice's long position.| Citigroup vs. Barclays PLC ADR | Citigroup vs. ING Group NV | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Natwest Group PLC |
| Antibiotice vs. IM Vinaria Purcari | Antibiotice vs. Digi Communications NV | Antibiotice vs. IHUNT TECHNOLOGY IMPORT EXPORT | Antibiotice vs. Evergent Investments SA |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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