Correlation Between Citigroup and BioMark Diagnostics
Can any of the company-specific risk be diversified away by investing in both Citigroup and BioMark Diagnostics 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 BioMark Diagnostics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and BioMark Diagnostics, you can compare the effects of market volatilities on Citigroup and BioMark Diagnostics 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 BioMark Diagnostics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and BioMark Diagnostics.
Diversification Opportunities for Citigroup and BioMark Diagnostics
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and BioMark is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and BioMark Diagnostics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioMark Diagnostics 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 BioMark Diagnostics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioMark Diagnostics has no effect on the direction of Citigroup i.e., Citigroup and BioMark Diagnostics go up and down completely randomly.
Pair Corralation between Citigroup and BioMark Diagnostics
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.4 times more return on investment than BioMark Diagnostics. However, Citigroup is 2.52 times less risky than BioMark Diagnostics. It trades about 0.27 of its potential returns per unit of risk. BioMark Diagnostics is currently generating about 0.01 per unit of risk. If you would invest 6,889 in Citigroup on September 14, 2024 and sell it today you would earn a total of 307.00 from holding Citigroup or generate 4.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Citigroup vs. BioMark Diagnostics
Performance |
| Timeline |
| Citigroup |
| BioMark Diagnostics |
Citigroup and BioMark Diagnostics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and BioMark Diagnostics
The main advantage of trading using opposite Citigroup and BioMark Diagnostics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, BioMark Diagnostics 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 BioMark Diagnostics will offset losses from the drop in BioMark Diagnostics' long position.| Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal | Citigroup vs. Bank of Nova |
| BioMark Diagnostics vs. Neuronetics | BioMark Diagnostics vs. Intelligent Bio Solutions | BioMark Diagnostics vs. Biodesix | BioMark Diagnostics vs. Precipio |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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