Correlation Between Citigroup and PT Janu
Can any of the company-specific risk be diversified away by investing in both Citigroup and PT Janu 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 PT Janu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and PT Janu Putra, you can compare the effects of market volatilities on Citigroup and PT Janu 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 PT Janu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and PT Janu.
Diversification Opportunities for Citigroup and PT Janu
Good diversification
The 3 months correlation between Citigroup and AYAM is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and PT Janu Putra in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Janu Putra 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 PT Janu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Janu Putra has no effect on the direction of Citigroup i.e., Citigroup and PT Janu go up and down completely randomly.
Pair Corralation between Citigroup and PT Janu
Taking into account the 90-day investment horizon Citigroup is expected to under-perform the PT Janu. In addition to that, Citigroup is 1.03 times more volatile than PT Janu Putra. It trades about -0.08 of its total potential returns per unit of risk. PT Janu Putra is currently generating about 0.16 per unit of volatility. If you would invest 14,100 in PT Janu Putra on November 28, 2024 and sell it today you would earn a total of 700.00 from holding PT Janu Putra or generate 4.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Citigroup vs. PT Janu Putra
Performance |
| Timeline |
| Citigroup |
| PT Janu Putra |
Citigroup and PT Janu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and PT Janu
The main advantage of trading using opposite Citigroup and PT Janu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, PT Janu 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 PT Janu will offset losses from the drop in PT Janu's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| PT Janu vs. PT Hetzer Medical | PT Janu vs. City Retail Developments | PT Janu vs. Smartfren Telecom Tbk | PT Janu vs. Lotte Chemical Titan |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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