Correlation Between Citigroup and Attendo AB
Can any of the company-specific risk be diversified away by investing in both Citigroup and Attendo AB 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 Attendo AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Attendo AB, you can compare the effects of market volatilities on Citigroup and Attendo AB 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 Attendo AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Attendo AB.
Diversification Opportunities for Citigroup and Attendo AB
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Citigroup and Attendo is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Attendo AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Attendo AB 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 Attendo AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Attendo AB has no effect on the direction of Citigroup i.e., Citigroup and Attendo AB go up and down completely randomly.
Pair Corralation between Citigroup and Attendo AB
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.19 times more return on investment than Attendo AB. However, Citigroup is 2.19 times more volatile than Attendo AB. It trades about 0.21 of its potential returns per unit of risk. Attendo AB is currently generating about 0.07 per unit of risk. If you would invest 6,360 in Citigroup on August 29, 2024 and sell it today you would earn a total of 615.00 from holding Citigroup or generate 9.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Attendo AB
Performance |
| Timeline |
| Citigroup |
| Attendo AB |
Citigroup and Attendo AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Attendo AB
The main advantage of trading using opposite Citigroup and Attendo AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Attendo AB 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 Attendo AB will offset losses from the drop in Attendo AB's long position.The idea behind Citigroup and Attendo AB pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Attendo AB vs. Humana AB | Attendo AB vs. Ambea AB | Attendo AB vs. Dometic Group AB | Attendo AB vs. Bonava AB |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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