Correlation Between Citigroup and Cordoba Minerals
Can any of the company-specific risk be diversified away by investing in both Citigroup and Cordoba Minerals 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 Cordoba Minerals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Cordoba Minerals Corp, you can compare the effects of market volatilities on Citigroup and Cordoba Minerals 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 Cordoba Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Cordoba Minerals.
Diversification Opportunities for Citigroup and Cordoba Minerals
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Citigroup and Cordoba is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Cordoba Minerals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cordoba Minerals 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 Cordoba Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cordoba Minerals Corp has no effect on the direction of Citigroup i.e., Citigroup and Cordoba Minerals go up and down completely randomly.
Pair Corralation between Citigroup and Cordoba Minerals
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.28 times more return on investment than Cordoba Minerals. However, Citigroup is 3.55 times less risky than Cordoba Minerals. It trades about 0.27 of its potential returns per unit of risk. Cordoba Minerals Corp is currently generating about -0.03 per unit of risk. If you would invest 6,315 in Citigroup on September 2, 2024 and sell it today you would earn a total of 772.00 from holding Citigroup or generate 12.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Cordoba Minerals Corp
Performance |
| Timeline |
| Citigroup |
| Cordoba Minerals Corp |
Citigroup and Cordoba Minerals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Cordoba Minerals
The main advantage of trading using opposite Citigroup and Cordoba Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Cordoba Minerals 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 Cordoba Minerals will offset losses from the drop in Cordoba Minerals' long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Cordoba Minerals vs. South32 Limited | Cordoba Minerals vs. NioCorp Developments Ltd | Cordoba Minerals vs. HUMANA INC | Cordoba Minerals vs. SCOR PK |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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