Correlation Between Citigroup and Atelierele CFR
Can any of the company-specific risk be diversified away by investing in both Citigroup and Atelierele CFR 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 Atelierele CFR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Atelierele CFR Grivita, you can compare the effects of market volatilities on Citigroup and Atelierele CFR 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 Atelierele CFR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Atelierele CFR.
Diversification Opportunities for Citigroup and Atelierele CFR
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Citigroup and Atelierele is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Atelierele CFR Grivita in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atelierele CFR Grivita 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 Atelierele CFR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atelierele CFR Grivita has no effect on the direction of Citigroup i.e., Citigroup and Atelierele CFR go up and down completely randomly.
Pair Corralation between Citigroup and Atelierele CFR
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.39 times less return on investment than Atelierele CFR. But when comparing it to its historical volatility, Citigroup is 2.43 times less risky than Atelierele CFR. It trades about 0.07 of its potential returns per unit of risk. Atelierele CFR Grivita is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 2,500 in Atelierele CFR Grivita on August 29, 2024 and sell it today you would earn a total of 2,650 from holding Atelierele CFR Grivita or generate 106.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 68.55% |
| Values | Daily Returns |
Citigroup vs. Atelierele CFR Grivita
Performance |
| Timeline |
| Citigroup |
| Atelierele CFR Grivita |
Citigroup and Atelierele CFR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Atelierele CFR
The main advantage of trading using opposite Citigroup and Atelierele CFR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Atelierele CFR 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 Atelierele CFR will offset losses from the drop in Atelierele CFR's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Atelierele CFR vs. Teraplast Bist | Atelierele CFR vs. Electroarges S | Atelierele CFR vs. Comvex SA | Atelierele CFR vs. IAR 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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