Correlation Between Citigroup and BRITISH AMERICAN
Can any of the company-specific risk be diversified away by investing in both Citigroup and BRITISH AMERICAN 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 BRITISH AMERICAN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and BRITISH AMERICAN TOBACCO, you can compare the effects of market volatilities on Citigroup and BRITISH AMERICAN 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 BRITISH AMERICAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and BRITISH AMERICAN.
Diversification Opportunities for Citigroup and BRITISH AMERICAN
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and BRITISH is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and BRITISH AMERICAN TOBACCO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BRITISH AMERICAN TOBACCO 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 BRITISH AMERICAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BRITISH AMERICAN TOBACCO has no effect on the direction of Citigroup i.e., Citigroup and BRITISH AMERICAN go up and down completely randomly.
Pair Corralation between Citigroup and BRITISH AMERICAN
If you would invest 4,218 in Citigroup on September 2, 2024 and sell it today you would earn a total of 2,869 from holding Citigroup or generate 68.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.59% |
| Values | Daily Returns |
Citigroup vs. BRITISH AMERICAN TOBACCO
Performance |
| Timeline |
| Citigroup |
| BRITISH AMERICAN TOBACCO |
Citigroup and BRITISH AMERICAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and BRITISH AMERICAN
The main advantage of trading using opposite Citigroup and BRITISH AMERICAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, BRITISH AMERICAN 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 BRITISH AMERICAN will offset losses from the drop in BRITISH AMERICAN's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| BRITISH AMERICAN vs. EAST AFRICAN BREWERIES | BRITISH AMERICAN vs. AIRTEL UGANDA LIMITED | BRITISH AMERICAN vs. NATION MEDIA GROUP | BRITISH AMERICAN vs. STANBIC BANK HOLDINGS |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |