Correlation Between Citigroup and 1911 Gold
Can any of the company-specific risk be diversified away by investing in both Citigroup and 1911 Gold 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 1911 Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and 1911 Gold Corp, you can compare the effects of market volatilities on Citigroup and 1911 Gold 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 1911 Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and 1911 Gold.
Diversification Opportunities for Citigroup and 1911 Gold
Very weak diversification
The 3 months correlation between Citigroup and 1911 is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and 1911 Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 1911 Gold Corp 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 1911 Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 1911 Gold Corp has no effect on the direction of Citigroup i.e., Citigroup and 1911 Gold go up and down completely randomly.
Pair Corralation between Citigroup and 1911 Gold
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.58 times less return on investment than 1911 Gold. But when comparing it to its historical volatility, Citigroup is 4.61 times less risky than 1911 Gold. It trades about 0.07 of its potential returns per unit of risk. 1911 Gold Corp is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 11.00 in 1911 Gold Corp on September 3, 2024 and sell it today you would earn a total of 1.00 from holding 1911 Gold Corp or generate 9.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. 1911 Gold Corp
Performance |
| Timeline |
| Citigroup |
| 1911 Gold Corp |
Citigroup and 1911 Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and 1911 Gold
The main advantage of trading using opposite Citigroup and 1911 Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, 1911 Gold 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 1911 Gold will offset losses from the drop in 1911 Gold's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| 1911 Gold vs. Antioquia Gold | 1911 Gold vs. Asante Gold | 1911 Gold vs. Antilles Gold Limited | 1911 Gold vs. Allegiant Gold |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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