Correlation Between Citigroup and Bank Ina
Can any of the company-specific risk be diversified away by investing in both Citigroup and Bank Ina 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 Bank Ina into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Bank Ina Perdana, you can compare the effects of market volatilities on Citigroup and Bank Ina 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 Bank Ina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Bank Ina.
Diversification Opportunities for Citigroup and Bank Ina
Very weak diversification
The 3 months correlation between Citigroup and Bank is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Bank Ina Perdana in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Ina Perdana 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 Bank Ina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Ina Perdana has no effect on the direction of Citigroup i.e., Citigroup and Bank Ina go up and down completely randomly.
Pair Corralation between Citigroup and Bank Ina
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.93 times more return on investment than Bank Ina. However, Citigroup is 1.93 times more volatile than Bank Ina Perdana. It trades about 0.06 of its potential returns per unit of risk. Bank Ina Perdana is currently generating about 0.0 per unit of risk. If you would invest 6,166 in Citigroup on September 3, 2024 and sell it today you would earn a total of 921.00 from holding Citigroup or generate 14.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.95% |
| Values | Daily Returns |
Citigroup vs. Bank Ina Perdana
Performance |
| Timeline |
| Citigroup |
| Bank Ina Perdana |
Citigroup and Bank Ina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Bank Ina
The main advantage of trading using opposite Citigroup and Bank Ina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Bank Ina 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 Bank Ina will offset losses from the drop in Bank Ina's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Bank Ina vs. Bk Harda Internasional | Bank Ina vs. Bank Yudha Bhakti | Bank Ina vs. Bank Sinarmas Tbk | Bank Ina vs. Bank Maspion Indonesia |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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