Correlation Between Citigroup and Rio2
Can any of the company-specific risk be diversified away by investing in both Citigroup and Rio2 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 Rio2 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Rio2 Limited, you can compare the effects of market volatilities on Citigroup and Rio2 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 Rio2. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Rio2.
Diversification Opportunities for Citigroup and Rio2
Pay attention - limited upside
The 3 months correlation between Citigroup and Rio2 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Rio2 Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rio2 Limited 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 Rio2. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rio2 Limited has no effect on the direction of Citigroup i.e., Citigroup and Rio2 go up and down completely randomly.
Pair Corralation between Citigroup and Rio2
If you would invest 6,235 in Citigroup on September 4, 2024 and sell it today you would earn a total of 904.00 from holding Citigroup or generate 14.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Citigroup vs. Rio2 Limited
Performance |
| Timeline |
| Citigroup |
| Rio2 Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Rio2 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Rio2
The main advantage of trading using opposite Citigroup and Rio2 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Rio2 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 Rio2 will offset losses from the drop in Rio2's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Rio2 vs. Canaf Investments | Rio2 vs. Caribbean Utilities | Rio2 vs. Arbor Metals Corp | Rio2 vs. American Hotel Income |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |