Correlation Between Citigroup and BBTV Holdings
Can any of the company-specific risk be diversified away by investing in both Citigroup and BBTV Holdings 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 BBTV Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and BBTV Holdings, you can compare the effects of market volatilities on Citigroup and BBTV Holdings 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 BBTV Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and BBTV Holdings.
Diversification Opportunities for Citigroup and BBTV Holdings
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and BBTV is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and BBTV Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BBTV Holdings 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 BBTV Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BBTV Holdings has no effect on the direction of Citigroup i.e., Citigroup and BBTV Holdings go up and down completely randomly.
Pair Corralation between Citigroup and BBTV Holdings
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.57 times less return on investment than BBTV Holdings. But when comparing it to its historical volatility, Citigroup is 4.13 times less risky than BBTV Holdings. It trades about 0.08 of its potential returns per unit of risk. BBTV Holdings is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 26.00 in BBTV Holdings on August 31, 2024 and sell it today you would earn a total of 0.00 from holding BBTV Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 8.56% |
| Values | Daily Returns |
Citigroup vs. BBTV Holdings
Performance |
| Timeline |
| Citigroup |
| BBTV Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and BBTV Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and BBTV Holdings
The main advantage of trading using opposite Citigroup and BBTV Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, BBTV Holdings 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 BBTV Holdings will offset losses from the drop in BBTV Holdings' long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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