Correlation Between Citigroup and BioLife Sciences
Can any of the company-specific risk be diversified away by investing in both Citigroup and BioLife Sciences 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 BioLife Sciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and BioLife Sciences, you can compare the effects of market volatilities on Citigroup and BioLife Sciences 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 BioLife Sciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and BioLife Sciences.
Diversification Opportunities for Citigroup and BioLife Sciences
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and BioLife is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and BioLife Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioLife Sciences 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 BioLife Sciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioLife Sciences has no effect on the direction of Citigroup i.e., Citigroup and BioLife Sciences go up and down completely randomly.
Pair Corralation between Citigroup and BioLife Sciences
If you would invest 6,360 in Citigroup on August 29, 2024 and sell it today you would earn a total of 615.00 from holding Citigroup or generate 9.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Citigroup vs. BioLife Sciences
Performance |
| Timeline |
| Citigroup |
| BioLife Sciences |
Citigroup and BioLife Sciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and BioLife Sciences
The main advantage of trading using opposite Citigroup and BioLife Sciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, BioLife Sciences 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 BioLife Sciences will offset losses from the drop in BioLife Sciences' long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| BioLife Sciences vs. Innerscope Advertising Agency | BioLife Sciences vs. CeCors Inc | BioLife Sciences vs. GlucoTrack | BioLife Sciences vs. Sharps Technology |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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