Correlation Between Citigroup and Centaur Media
Can any of the company-specific risk be diversified away by investing in both Citigroup and Centaur Media 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 Centaur Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Centaur Media, you can compare the effects of market volatilities on Citigroup and Centaur Media 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 Centaur Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Centaur Media.
Diversification Opportunities for Citigroup and Centaur Media
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Centaur is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Centaur Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centaur Media 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 Centaur Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centaur Media has no effect on the direction of Citigroup i.e., Citigroup and Centaur Media go up and down completely randomly.
Pair Corralation between Citigroup and Centaur Media
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.73 times more return on investment than Centaur Media. However, Citigroup is 1.38 times less risky than Centaur Media. It trades about 0.07 of its potential returns per unit of risk. Centaur Media is currently generating about -0.14 per unit of risk. If you would invest 6,079 in Citigroup on September 1, 2024 and sell it today you would earn a total of 1,008 from holding Citigroup or generate 16.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.67% |
| Values | Daily Returns |
Citigroup vs. Centaur Media
Performance |
| Timeline |
| Citigroup |
| Centaur Media |
Citigroup and Centaur Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Centaur Media
The main advantage of trading using opposite Citigroup and Centaur Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Centaur Media 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 Centaur Media will offset losses from the drop in Centaur Media's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Centaur Media vs. X FAB Silicon Foundries | Centaur Media vs. Coor Service Management | Centaur Media vs. Hochschild Mining plc | Centaur Media vs. Universal Music Group |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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