Correlation Between Citigroup and BRITVIC
Can any of the company-specific risk be diversified away by investing in both Citigroup and BRITVIC 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 BRITVIC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and BRITVIC, you can compare the effects of market volatilities on Citigroup and BRITVIC 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 BRITVIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and BRITVIC.
Diversification Opportunities for Citigroup and BRITVIC
Pay attention - limited upside
The 3 months correlation between Citigroup and BRITVIC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and BRITVIC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BRITVIC 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 BRITVIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BRITVIC has no effect on the direction of Citigroup i.e., Citigroup and BRITVIC go up and down completely randomly.
Pair Corralation between Citigroup and BRITVIC
If you would invest 4,091 in Citigroup on September 14, 2024 and sell it today you would earn a total of 3,029 from holding Citigroup or generate 74.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Citigroup vs. BRITVIC
Performance |
| Timeline |
| Citigroup |
| BRITVIC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and BRITVIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and BRITVIC
The main advantage of trading using opposite Citigroup and BRITVIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, BRITVIC 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 BRITVIC will offset losses from the drop in BRITVIC's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| BRITVIC vs. VIRGIN WINES UK | BRITVIC vs. Treasury Wine Estates | BRITVIC vs. Charter Communications | BRITVIC vs. Webster Financial |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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