Correlation Between Citigroup and Churchill Capital
Can any of the company-specific risk be diversified away by investing in both Citigroup and Churchill Capital 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 Churchill Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Churchill Capital V, you can compare the effects of market volatilities on Citigroup and Churchill Capital 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 Churchill Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Churchill Capital.
Diversification Opportunities for Citigroup and Churchill Capital
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Citigroup and Churchill is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Churchill Capital V in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Churchill Capital 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 Churchill Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Churchill Capital has no effect on the direction of Citigroup i.e., Citigroup and Churchill Capital go up and down completely randomly.
Pair Corralation between Citigroup and Churchill Capital
If you would invest 6,412 in Citigroup on August 30, 2024 and sell it today you would earn a total of 604.00 from holding Citigroup or generate 9.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 4.35% |
| Values | Daily Returns |
Citigroup vs. Churchill Capital V
Performance |
| Timeline |
| Citigroup |
| Churchill Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Churchill Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Churchill Capital
The main advantage of trading using opposite Citigroup and Churchill Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Churchill Capital 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 Churchill Capital will offset losses from the drop in Churchill Capital's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Churchill Capital vs. In Veritas Medical | Churchill Capital vs. TMT Acquisition Corp | Churchill Capital vs. IX Acquisition Corp |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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