Correlation Between Citigroup and SPASX Dividend
Can any of the company-specific risk be diversified away by investing in both Citigroup and SPASX Dividend 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 SPASX Dividend into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and SPASX Dividend Opportunities, you can compare the effects of market volatilities on Citigroup and SPASX Dividend 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 SPASX Dividend. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and SPASX Dividend.
Diversification Opportunities for Citigroup and SPASX Dividend
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Citigroup and SPASX is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and SPASX Dividend Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPASX Dividend Oppor 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 SPASX Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPASX Dividend Oppor has no effect on the direction of Citigroup i.e., Citigroup and SPASX Dividend go up and down completely randomly.
Pair Corralation between Citigroup and SPASX Dividend
Taking into account the 90-day investment horizon Citigroup is expected to generate 3.09 times more return on investment than SPASX Dividend. However, Citigroup is 3.09 times more volatile than SPASX Dividend Opportunities. It trades about 0.21 of its potential returns per unit of risk. SPASX Dividend Opportunities is currently generating about 0.05 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. SPASX Dividend Opportunities
Performance |
| Timeline |
Citigroup and SPASX Dividend Volatility Contrast
Predicted Return Density |
| Returns |
Citigroup
Pair trading matchups for Citigroup
SPASX Dividend Opportunities
Pair trading matchups for SPASX Dividend
Pair Trading with Citigroup and SPASX Dividend
The main advantage of trading using opposite Citigroup and SPASX Dividend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, SPASX Dividend 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 SPASX Dividend will offset losses from the drop in SPASX Dividend's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| SPASX Dividend vs. Clime Investment Management | SPASX Dividend vs. Garda Diversified Ppty | SPASX Dividend vs. Genetic Technologies | SPASX Dividend vs. Neurotech International |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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