Correlation Between Citigroup and Cibc Atlas
Can any of the company-specific risk be diversified away by investing in both Citigroup and Cibc Atlas 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 Cibc Atlas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Cibc Atlas All, you can compare the effects of market volatilities on Citigroup and Cibc Atlas 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 Cibc Atlas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Cibc Atlas.
Diversification Opportunities for Citigroup and Cibc Atlas
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and Cibc is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Cibc Atlas All in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cibc Atlas All 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 Cibc Atlas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cibc Atlas All has no effect on the direction of Citigroup i.e., Citigroup and Cibc Atlas go up and down completely randomly.
Pair Corralation between Citigroup and Cibc Atlas
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.59 times more return on investment than Cibc Atlas. However, Citigroup is 1.59 times more volatile than Cibc Atlas All. It trades about 0.41 of its potential returns per unit of risk. Cibc Atlas All is currently generating about 0.1 per unit of risk. If you would invest 6,994 in Citigroup on November 3, 2024 and sell it today you would earn a total of 1,149 from holding Citigroup or generate 16.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Cibc Atlas All
Performance |
| Timeline |
| Citigroup |
| Cibc Atlas All |
Citigroup and Cibc Atlas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Cibc Atlas
The main advantage of trading using opposite Citigroup and Cibc Atlas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Cibc Atlas 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 Cibc Atlas will offset losses from the drop in Cibc Atlas' long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Cibc Atlas vs. Pace High Yield | Cibc Atlas vs. Rbc Bluebay Global | Cibc Atlas vs. One Choice Portfolio | Cibc Atlas vs. Transamerica High Yield |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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