Correlation Between Citigroup and Big Screen
Can any of the company-specific risk be diversified away by investing in both Citigroup and Big Screen 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 Big Screen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Big Screen Entertainment, you can compare the effects of market volatilities on Citigroup and Big Screen 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 Big Screen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Big Screen.
Diversification Opportunities for Citigroup and Big Screen
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and Big is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Big Screen Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Big Screen Entertainment 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 Big Screen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Big Screen Entertainment has no effect on the direction of Citigroup i.e., Citigroup and Big Screen go up and down completely randomly.
Pair Corralation between Citigroup and Big Screen
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.12 times less return on investment than Big Screen. But when comparing it to its historical volatility, Citigroup is 6.36 times less risky than Big Screen. It trades about 0.09 of its potential returns per unit of risk. Big Screen Entertainment is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 3.29 in Big Screen Entertainment on November 28, 2024 and sell it today you would lose (1.89) from holding Big Screen Entertainment or give up 57.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 87.95% |
| Values | Daily Returns |
Citigroup vs. Big Screen Entertainment
Performance |
| Timeline |
| Citigroup |
| Big Screen Entertainment |
Citigroup and Big Screen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Big Screen
The main advantage of trading using opposite Citigroup and Big Screen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Big Screen 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 Big Screen will offset losses from the drop in Big Screen's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Big Screen vs. SNM Gobal Holdings | Big Screen vs. Sycamore Entmt Grp | Big Screen vs. AMC Entertainment Holdings | Big Screen vs. Walt Disney |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |