Correlation Between Citigroup and Careium AB
Can any of the company-specific risk be diversified away by investing in both Citigroup and Careium AB 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 Careium AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Careium AB, you can compare the effects of market volatilities on Citigroup and Careium AB 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 Careium AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Careium AB.
Diversification Opportunities for Citigroup and Careium AB
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and Careium is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Careium AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Careium AB 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 Careium AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Careium AB has no effect on the direction of Citigroup i.e., Citigroup and Careium AB go up and down completely randomly.
Pair Corralation between Citigroup and Careium AB
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.62 times more return on investment than Careium AB. However, Citigroup is 1.62 times more volatile than Careium AB. It trades about 0.45 of its potential returns per unit of risk. Careium AB is currently generating about -0.12 per unit of risk. If you would invest 6,842 in Citigroup on October 20, 2024 and sell it today you would earn a total of 1,157 from holding Citigroup or generate 16.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 85.0% |
| Values | Daily Returns |
Citigroup vs. Careium AB
Performance |
| Timeline |
| Citigroup |
| Careium AB |
Citigroup and Careium AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Careium AB
The main advantage of trading using opposite Citigroup and Careium AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Careium AB 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 Careium AB will offset losses from the drop in Careium AB's long position.| Citigroup vs. Bank of Montreal | Citigroup vs. Canadian Imperial Bank | Citigroup vs. Bank of Nova | Citigroup vs. JPMorgan Chase Co |
| Careium AB vs. DORO AB | Careium AB vs. Bredband2 i Skandinavien | Careium AB vs. Green Landscaping Group | Careium AB vs. Volati AB |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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