Correlation Between Citigroup and BlockQuarry Corp
Can any of the company-specific risk be diversified away by investing in both Citigroup and BlockQuarry Corp 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 BlockQuarry Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and BlockQuarry Corp, you can compare the effects of market volatilities on Citigroup and BlockQuarry Corp 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 BlockQuarry Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and BlockQuarry Corp.
Diversification Opportunities for Citigroup and BlockQuarry Corp
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Citigroup and BlockQuarry is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and BlockQuarry Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BlockQuarry Corp 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 BlockQuarry Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BlockQuarry Corp has no effect on the direction of Citigroup i.e., Citigroup and BlockQuarry Corp go up and down completely randomly.
Pair Corralation between Citigroup and BlockQuarry Corp
Taking into account the 90-day investment horizon Citigroup is expected to generate 3.5 times less return on investment than BlockQuarry Corp. But when comparing it to its historical volatility, Citigroup is 7.79 times less risky than BlockQuarry Corp. It trades about 0.1 of its potential returns per unit of risk. BlockQuarry Corp is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 8.60 in BlockQuarry Corp on September 12, 2024 and sell it today you would lose (3.69) from holding BlockQuarry Corp or give up 42.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. BlockQuarry Corp
Performance |
| Timeline |
| Citigroup |
| BlockQuarry Corp |
Citigroup and BlockQuarry Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and BlockQuarry Corp
The main advantage of trading using opposite Citigroup and BlockQuarry Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, BlockQuarry Corp 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 BlockQuarry Corp will offset losses from the drop in BlockQuarry Corp's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| BlockQuarry Corp vs. Cipher Mining | BlockQuarry Corp vs. Terawulf | BlockQuarry Corp vs. Iris Energy | BlockQuarry Corp vs. Stronghold Digital Mining |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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