Correlation Between Citigroup and Beard Energy
Can any of the company-specific risk be diversified away by investing in both Citigroup and Beard Energy 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 Beard Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Beard Energy Transition, you can compare the effects of market volatilities on Citigroup and Beard Energy 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 Beard Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Beard Energy.
Diversification Opportunities for Citigroup and Beard Energy
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and Beard is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Beard Energy Transition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beard Energy Transition 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 Beard Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beard Energy Transition has no effect on the direction of Citigroup i.e., Citigroup and Beard Energy go up and down completely randomly.
Pair Corralation between Citigroup and Beard Energy
If you would invest 6,902 in Citigroup on September 13, 2024 and sell it today you would earn a total of 271.00 from holding Citigroup or generate 3.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Citigroup vs. Beard Energy Transition
Performance |
| Timeline |
| Citigroup |
| Beard Energy Transition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Beard Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Beard Energy
The main advantage of trading using opposite Citigroup and Beard Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Beard Energy 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 Beard Energy will offset losses from the drop in Beard Energy's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Beard Energy vs. Valuence Merger Corp | Beard Energy vs. PowerUp Acquisition Corp | Beard Energy vs. Everest Consolidator Acquisition | Beard Energy vs. Valuence Merger Corp |
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.
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