Correlation Between Citigroup and BankInvest Danske
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By analyzing existing cross correlation between Citigroup and BankInvest Danske, you can compare the effects of market volatilities on Citigroup and BankInvest Danske 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 BankInvest Danske. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and BankInvest Danske.
Diversification Opportunities for Citigroup and BankInvest Danske
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Citigroup and BankInvest is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and BankInvest Danske in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BankInvest Danske 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 BankInvest Danske. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BankInvest Danske has no effect on the direction of Citigroup i.e., Citigroup and BankInvest Danske go up and down completely randomly.
Pair Corralation between Citigroup and BankInvest Danske
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.04 times more return on investment than BankInvest Danske. However, Citigroup is 1.04 times more volatile than BankInvest Danske. It trades about 0.25 of its potential returns per unit of risk. BankInvest Danske is currently generating about 0.06 per unit of risk. If you would invest 6,902 in Citigroup on September 13, 2024 and sell it today you would earn a total of 294.00 from holding Citigroup or generate 4.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Citigroup vs. BankInvest Danske
Performance |
| Timeline |
| Citigroup |
| BankInvest Danske |
Citigroup and BankInvest Danske Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and BankInvest Danske
The main advantage of trading using opposite Citigroup and BankInvest Danske positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, BankInvest Danske 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 BankInvest Danske will offset losses from the drop in BankInvest Danske's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| BankInvest Danske vs. Jyske Invest Nye | BankInvest Danske vs. Jyske Invest Korte | BankInvest Danske vs. Jyske Invest Nye | BankInvest Danske vs. Jyske Invest Virksomhedsobligationer |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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