Correlation Between Citigroup and Boryszew
Can any of the company-specific risk be diversified away by investing in both Citigroup and Boryszew 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 Boryszew into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Boryszew SA, you can compare the effects of market volatilities on Citigroup and Boryszew 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 Boryszew. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Boryszew.
Diversification Opportunities for Citigroup and Boryszew
Poor diversification
The 3 months correlation between Citigroup and Boryszew is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Boryszew SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boryszew SA 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 Boryszew. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boryszew SA has no effect on the direction of Citigroup i.e., Citigroup and Boryszew go up and down completely randomly.
Pair Corralation between Citigroup and Boryszew
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.38 times more return on investment than Boryszew. However, Citigroup is 1.38 times more volatile than Boryszew SA. It trades about 0.22 of its potential returns per unit of risk. Boryszew SA is currently generating about -0.16 per unit of risk. If you would invest 6,360 in Citigroup on August 29, 2024 and sell it today you would earn a total of 656.00 from holding Citigroup or generate 10.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 91.3% |
| Values | Daily Returns |
Citigroup vs. Boryszew SA
Performance |
| Timeline |
| Citigroup |
| Boryszew SA |
Citigroup and Boryszew Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Boryszew
The main advantage of trading using opposite Citigroup and Boryszew positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Boryszew 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 Boryszew will offset losses from the drop in Boryszew's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Boryszew vs. Banco Santander SA | Boryszew vs. UniCredit SpA | Boryszew vs. CEZ as | Boryszew vs. Polski Koncern Naftowy |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |