Correlation Between Citigroup and Couchbase
Can any of the company-specific risk be diversified away by investing in both Citigroup and Couchbase 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 Couchbase into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Couchbase, you can compare the effects of market volatilities on Citigroup and Couchbase 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 Couchbase. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Couchbase.
Diversification Opportunities for Citigroup and Couchbase
Poor diversification
The 3 months correlation between Citigroup and Couchbase is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Couchbase in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Couchbase 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 Couchbase. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Couchbase has no effect on the direction of Citigroup i.e., Citigroup and Couchbase go up and down completely randomly.
Pair Corralation between Citigroup and Couchbase
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.18 times less return on investment than Couchbase. But when comparing it to its historical volatility, Citigroup is 2.05 times less risky than Couchbase. It trades about 0.06 of its potential returns per unit of risk. Couchbase is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,614 in Couchbase on August 27, 2024 and sell it today you would earn a total of 479.00 from holding Couchbase or generate 29.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Couchbase
Performance |
| Timeline |
| Citigroup |
| Couchbase |
Citigroup and Couchbase Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Couchbase
The main advantage of trading using opposite Citigroup and Couchbase positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Couchbase 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 Couchbase will offset losses from the drop in Couchbase's long position.| Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal | Citigroup vs. Bank of Nova |
| Couchbase vs. Evertec | Couchbase vs. Flywire Corp | Couchbase vs. i3 Verticals | Couchbase vs. CSG Systems 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |