Correlation Between Citigroup and Bitfarms
Can any of the company-specific risk be diversified away by investing in both Citigroup and Bitfarms 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 Bitfarms into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Bitfarms, you can compare the effects of market volatilities on Citigroup and Bitfarms 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 Bitfarms. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Bitfarms.
Diversification Opportunities for Citigroup and Bitfarms
Weak diversification
The 3 months correlation between Citigroup and Bitfarms is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Bitfarms in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitfarms 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 Bitfarms. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitfarms has no effect on the direction of Citigroup i.e., Citigroup and Bitfarms go up and down completely randomly.
Pair Corralation between Citigroup and Bitfarms
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.26 times more return on investment than Bitfarms. However, Citigroup is 3.91 times less risky than Bitfarms. It trades about 0.25 of its potential returns per unit of risk. Bitfarms is currently generating about 0.01 per unit of risk. If you would invest 6,360 in Citigroup on August 27, 2024 and sell it today you would earn a total of 715.00 from holding Citigroup or generate 11.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Bitfarms
Performance |
| Timeline |
| Citigroup |
| Bitfarms |
Citigroup and Bitfarms Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Bitfarms
The main advantage of trading using opposite Citigroup and Bitfarms positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Bitfarms 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 Bitfarms will offset losses from the drop in Bitfarms' long position.| Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal | Citigroup vs. Bank of Nova |
| Bitfarms vs. PowerUp Acquisition Corp | Bitfarms vs. Aurora Innovation | Bitfarms vs. HUMANA INC | Bitfarms vs. Aquagold 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Stocks Directory Find actively traded stocks across global markets | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |