Correlation Between Citigroup and STKD Bitcoin
Can any of the company-specific risk be diversified away by investing in both Citigroup and STKD Bitcoin 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 STKD Bitcoin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and STKD Bitcoin Gold, you can compare the effects of market volatilities on Citigroup and STKD Bitcoin 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 STKD Bitcoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and STKD Bitcoin.
Diversification Opportunities for Citigroup and STKD Bitcoin
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Citigroup and STKD is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and STKD Bitcoin Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STKD Bitcoin Gold 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 STKD Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STKD Bitcoin Gold has no effect on the direction of Citigroup i.e., Citigroup and STKD Bitcoin go up and down completely randomly.
Pair Corralation between Citigroup and STKD Bitcoin
Taking into account the 90-day investment horizon Citigroup is expected to generate 5.04 times less return on investment than STKD Bitcoin. But when comparing it to its historical volatility, Citigroup is 4.72 times less risky than STKD Bitcoin. It trades about 0.19 of its potential returns per unit of risk. STKD Bitcoin Gold is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 2,661 in STKD Bitcoin Gold on September 18, 2024 and sell it today you would earn a total of 404.00 from holding STKD Bitcoin Gold or generate 15.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. STKD Bitcoin Gold
Performance |
| Timeline |
| Citigroup |
| STKD Bitcoin Gold |
Citigroup and STKD Bitcoin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and STKD Bitcoin
The main advantage of trading using opposite Citigroup and STKD Bitcoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, STKD Bitcoin 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 STKD Bitcoin will offset losses from the drop in STKD Bitcoin's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| STKD Bitcoin vs. Freedom Day Dividend | STKD Bitcoin vs. Franklin Templeton ETF | STKD Bitcoin vs. iShares MSCI China | STKD Bitcoin vs. Tidal Trust II |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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