Correlation Between Citigroup and Ossiam Lux
Can any of the company-specific risk be diversified away by investing in both Citigroup and Ossiam Lux 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 Ossiam Lux into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Ossiam Lux , you can compare the effects of market volatilities on Citigroup and Ossiam Lux 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 Ossiam Lux. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Ossiam Lux.
Diversification Opportunities for Citigroup and Ossiam Lux
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Citigroup and Ossiam is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Ossiam Lux in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ossiam Lux 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 Ossiam Lux. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ossiam Lux has no effect on the direction of Citigroup i.e., Citigroup and Ossiam Lux go up and down completely randomly.
Pair Corralation between Citigroup and Ossiam Lux
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.56 times more return on investment than Ossiam Lux. However, Citigroup is 2.56 times more volatile than Ossiam Lux . It trades about 0.27 of its potential returns per unit of risk. Ossiam Lux is currently generating about 0.41 per unit of risk. If you would invest 6,315 in Citigroup on September 2, 2024 and sell it today you would earn a total of 772.00 from holding Citigroup or generate 12.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Citigroup vs. Ossiam Lux
Performance |
| Timeline |
| Citigroup |
| Ossiam Lux |
Citigroup and Ossiam Lux Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Ossiam Lux
The main advantage of trading using opposite Citigroup and Ossiam Lux positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Ossiam Lux 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 Ossiam Lux will offset losses from the drop in Ossiam Lux's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Ossiam Lux vs. Ossiam Shiller Barclays | Ossiam Lux vs. Ossiam Europe ESG | Ossiam Lux vs. Ossiam Minimum Variance | Ossiam Lux vs. Ossiam Shiller Barclays |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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