Correlation Between Citigroup and Weg ADM
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By analyzing existing cross correlation between Citigroup and Weg ADM General, you can compare the effects of market volatilities on Citigroup and Weg ADM 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 Weg ADM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Weg ADM.
Diversification Opportunities for Citigroup and Weg ADM
Very good diversification
The 3 months correlation between Citigroup and Weg is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Weg ADM General in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weg ADM General 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 Weg ADM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Weg ADM General has no effect on the direction of Citigroup i.e., Citigroup and Weg ADM go up and down completely randomly.
Pair Corralation between Citigroup and Weg ADM
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.78 times more return on investment than Weg ADM. However, Citigroup is 2.78 times more volatile than Weg ADM General. It trades about 0.24 of its potential returns per unit of risk. Weg ADM General is currently generating about -0.17 per unit of risk. If you would invest 6,245 in Citigroup on August 25, 2024 and sell it today you would earn a total of 739.00 from holding Citigroup or generate 11.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Citigroup vs. Weg ADM General
Performance |
| Timeline |
| Citigroup |
| Weg ADM General |
Citigroup and Weg ADM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Weg ADM
The main advantage of trading using opposite Citigroup and Weg ADM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Weg ADM 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 Weg ADM will offset losses from the drop in Weg ADM's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Weg ADM vs. Salfacorp | Weg ADM vs. Vina Concha To | Weg ADM vs. HMC SA ADMINISTRADORA | Weg ADM vs. Multiexport Foods SA |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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