Correlation Between Citigroup and AwoX SA
Can any of the company-specific risk be diversified away by investing in both Citigroup and AwoX SA 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 AwoX SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and AwoX SA, you can compare the effects of market volatilities on Citigroup and AwoX SA 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 AwoX SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and AwoX SA.
Diversification Opportunities for Citigroup and AwoX SA
Pay attention - limited upside
The 3 months correlation between Citigroup and AwoX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and AwoX SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AwoX SA 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 AwoX SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AwoX SA has no effect on the direction of Citigroup i.e., Citigroup and AwoX SA go up and down completely randomly.
Pair Corralation between Citigroup and AwoX SA
If you would invest 4,112 in Citigroup on September 5, 2024 and sell it today you would earn a total of 3,030 from holding Citigroup or generate 73.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.2% |
| Values | Daily Returns |
Citigroup vs. AwoX SA
Performance |
| Timeline |
| Citigroup |
| AwoX SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and AwoX SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and AwoX SA
The main advantage of trading using opposite Citigroup and AwoX SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, AwoX SA 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 AwoX SA will offset losses from the drop in AwoX SA's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| AwoX SA vs. Axway Software | AwoX SA vs. Metalliance SA | AwoX SA vs. Linedata Services SA | AwoX SA vs. Gaztransport Technigaz SAS |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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