Correlation Between Citigroup and Cairo Mezz
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By analyzing existing cross correlation between Citigroup and Cairo Mezz PLC, you can compare the effects of market volatilities on Citigroup and Cairo Mezz 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 Cairo Mezz. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Cairo Mezz.
Diversification Opportunities for Citigroup and Cairo Mezz
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and Cairo is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Cairo Mezz PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cairo Mezz PLC 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 Cairo Mezz. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cairo Mezz PLC has no effect on the direction of Citigroup i.e., Citigroup and Cairo Mezz go up and down completely randomly.
Pair Corralation between Citigroup and Cairo Mezz
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.62 times more return on investment than Cairo Mezz. However, Citigroup is 1.62 times less risky than Cairo Mezz. It trades about 0.06 of its potential returns per unit of risk. Cairo Mezz PLC is currently generating about 0.03 per unit of risk. If you would invest 6,131 in Citigroup on August 24, 2024 and sell it today you would earn a total of 764.00 from holding Citigroup or generate 12.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Citigroup vs. Cairo Mezz PLC
Performance |
| Timeline |
| Citigroup |
| Cairo Mezz PLC |
Citigroup and Cairo Mezz Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Cairo Mezz
The main advantage of trading using opposite Citigroup and Cairo Mezz positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Cairo Mezz 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 Cairo Mezz will offset losses from the drop in Cairo Mezz's long position.| Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Royal Bank of | Citigroup vs. JPMorgan Chase Co |
| Cairo Mezz vs. Eurobank Ergasias Services | Cairo Mezz vs. Public Power | Cairo Mezz vs. Alpha Services and | Cairo Mezz vs. Mytilineos SA |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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