Correlation Between Citigroup and Cascadia Acquisition
Can any of the company-specific risk be diversified away by investing in both Citigroup and Cascadia Acquisition 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 Cascadia Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Cascadia Acquisition Corp, you can compare the effects of market volatilities on Citigroup and Cascadia Acquisition 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 Cascadia Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Cascadia Acquisition.
Diversification Opportunities for Citigroup and Cascadia Acquisition
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Citigroup and Cascadia is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Cascadia Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cascadia Acquisition Corp 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 Cascadia Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cascadia Acquisition Corp has no effect on the direction of Citigroup i.e., Citigroup and Cascadia Acquisition go up and down completely randomly.
Pair Corralation between Citigroup and Cascadia Acquisition
If you would invest 6,122 in Citigroup on August 26, 2024 and sell it today you would earn a total of 862.00 from holding Citigroup or generate 14.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Citigroup vs. Cascadia Acquisition Corp
Performance |
| Timeline |
| Citigroup |
| Cascadia Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Cascadia Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Cascadia Acquisition
The main advantage of trading using opposite Citigroup and Cascadia Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Cascadia Acquisition 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 Cascadia Acquisition will offset losses from the drop in Cascadia Acquisition's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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