Correlation Between Citigroup and Eyes On
Can any of the company-specific risk be diversified away by investing in both Citigroup and Eyes On 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 Eyes On into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Eyes On, you can compare the effects of market volatilities on Citigroup and Eyes On 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 Eyes On. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Eyes On.
Diversification Opportunities for Citigroup and Eyes On
Pay attention - limited upside
The 3 months correlation between Citigroup and Eyes is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Eyes On in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eyes On 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 Eyes On. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eyes On has no effect on the direction of Citigroup i.e., Citigroup and Eyes On go up and down completely randomly.
Pair Corralation between Citigroup and Eyes On
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 | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Citigroup vs. Eyes On
Performance |
| Timeline |
| Citigroup |
| Eyes On |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Eyes On Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Eyes On
The main advantage of trading using opposite Citigroup and Eyes On positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Eyes On 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 Eyes On will offset losses from the drop in Eyes On's long position.The idea behind Citigroup and Eyes On 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.| Eyes On vs. 17 Education Technology | Eyes On vs. Diageo PLC ADR | Eyes On vs. 51Talk Online Education | Eyes On vs. Lincoln Educational Services |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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