Correlation Between Citigroup and Evolve Automobile
Can any of the company-specific risk be diversified away by investing in both Citigroup and Evolve Automobile 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 Evolve Automobile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Evolve Automobile Innovation, you can compare the effects of market volatilities on Citigroup and Evolve Automobile 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 Evolve Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Evolve Automobile.
Diversification Opportunities for Citigroup and Evolve Automobile
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and Evolve is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Evolve Automobile Innovation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evolve Automobile 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 Evolve Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evolve Automobile has no effect on the direction of Citigroup i.e., Citigroup and Evolve Automobile go up and down completely randomly.
Pair Corralation between Citigroup and Evolve Automobile
Taking into account the 90-day investment horizon Citigroup is expected to generate 108.03 times more return on investment than Evolve Automobile. However, Citigroup is 108.03 times more volatile than Evolve Automobile Innovation. It trades about 0.32 of its potential returns per unit of risk. Evolve Automobile Innovation is currently generating about -0.38 per unit of risk. If you would invest 6,235 in Citigroup on September 3, 2024 and sell it today you would earn a total of 852.00 from holding Citigroup or generate 13.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 35.0% |
| Values | Daily Returns |
Citigroup vs. Evolve Automobile Innovation
Performance |
| Timeline |
| Citigroup |
| Evolve Automobile |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
Citigroup and Evolve Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Evolve Automobile
The main advantage of trading using opposite Citigroup and Evolve Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Evolve Automobile 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 Evolve Automobile will offset losses from the drop in Evolve Automobile's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Evolve Automobile vs. Evolve Artificial Intelligence | Evolve Automobile vs. Fidelity Tactical High | Evolve Automobile vs. Fidelity ClearPath 2045 | Evolve Automobile vs. Global Healthcare Income |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |