Correlation Between Citigroup and Atico Mining
Can any of the company-specific risk be diversified away by investing in both Citigroup and Atico Mining 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 Atico Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Atico Mining, you can compare the effects of market volatilities on Citigroup and Atico Mining 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 Atico Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Atico Mining.
Diversification Opportunities for Citigroup and Atico Mining
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and Atico is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Atico Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atico Mining 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 Atico Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atico Mining has no effect on the direction of Citigroup i.e., Citigroup and Atico Mining go up and down completely randomly.
Pair Corralation between Citigroup and Atico Mining
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.27 times more return on investment than Atico Mining. However, Citigroup is 3.76 times less risky than Atico Mining. It trades about 0.07 of its potential returns per unit of risk. Atico Mining is currently generating about 0.01 per unit of risk. If you would invest 4,118 in Citigroup on August 29, 2024 and sell it today you would earn a total of 2,898 from holding Citigroup or generate 70.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Atico Mining
Performance |
| Timeline |
| Citigroup |
| Atico Mining |
Citigroup and Atico Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Atico Mining
The main advantage of trading using opposite Citigroup and Atico Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Atico Mining 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 Atico Mining will offset losses from the drop in Atico Mining's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Atico Mining vs. Silver Hammer Mining | Atico Mining vs. Reyna Silver Corp | Atico Mining vs. Guanajuato Silver | Atico Mining vs. Silver One Resources |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| CEOs Directory Screen CEOs from public companies around the world |