Correlation Between Citigroup and Check Cap
Can any of the company-specific risk be diversified away by investing in both Citigroup and Check Cap 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 Check Cap into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Check Cap, you can compare the effects of market volatilities on Citigroup and Check Cap 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 Check Cap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Check Cap.
Diversification Opportunities for Citigroup and Check Cap
Pay attention - limited upside
The 3 months correlation between Citigroup and Check is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Check Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Check Cap 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 Check Cap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Check Cap has no effect on the direction of Citigroup i.e., Citigroup and Check Cap go up and down completely randomly.
Pair Corralation between Citigroup and Check Cap
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.44 times more return on investment than Check Cap. However, Citigroup is 2.3 times less risky than Check Cap. It trades about 0.26 of its potential returns per unit of risk. Check Cap is currently generating about -0.28 per unit of risk. If you would invest 6,361 in Citigroup on September 1, 2024 and sell it today you would earn a total of 726.00 from holding Citigroup or generate 11.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Check Cap
Performance |
| Timeline |
| Citigroup |
| Check Cap |
Citigroup and Check Cap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Check Cap
The main advantage of trading using opposite Citigroup and Check Cap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Check Cap 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 Check Cap will offset losses from the drop in Check Cap's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Check Cap vs. Fonar | Check Cap vs. Burning Rock Biotech | Check Cap vs. Sera Prognostics | Check Cap vs. Psychemedics |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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