Correlation Between Citigroup and CONSTANCE HOTELS
Can any of the company-specific risk be diversified away by investing in both Citigroup and CONSTANCE HOTELS 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 CONSTANCE HOTELS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and CONSTANCE HOTELS SERVICES, you can compare the effects of market volatilities on Citigroup and CONSTANCE HOTELS 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 CONSTANCE HOTELS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and CONSTANCE HOTELS.
Diversification Opportunities for Citigroup and CONSTANCE HOTELS
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Citigroup and CONSTANCE is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and CONSTANCE HOTELS SERVICES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CONSTANCE HOTELS SERVICES 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 CONSTANCE HOTELS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CONSTANCE HOTELS SERVICES has no effect on the direction of Citigroup i.e., Citigroup and CONSTANCE HOTELS go up and down completely randomly.
Pair Corralation between Citigroup and CONSTANCE HOTELS
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.84 times more return on investment than CONSTANCE HOTELS. However, Citigroup is 1.84 times more volatile than CONSTANCE HOTELS SERVICES. It trades about 0.09 of its potential returns per unit of risk. CONSTANCE HOTELS SERVICES is currently generating about 0.0 per unit of risk. If you would invest 5,401 in Citigroup on August 27, 2024 and sell it today you would earn a total of 1,583 from holding Citigroup or generate 29.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.4% |
| Values | Daily Returns |
Citigroup vs. CONSTANCE HOTELS SERVICES
Performance |
| Timeline |
| Citigroup |
| CONSTANCE HOTELS SERVICES |
Citigroup and CONSTANCE HOTELS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and CONSTANCE HOTELS
The main advantage of trading using opposite Citigroup and CONSTANCE HOTELS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, CONSTANCE HOTELS 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 CONSTANCE HOTELS will offset losses from the drop in CONSTANCE HOTELS's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| CONSTANCE HOTELS vs. NATIONAL INVESTMENT TRUST | CONSTANCE HOTELS vs. ABC BANKING PORATION | CONSTANCE HOTELS vs. CAVELL TOURISTIC INVESTMENTS | CONSTANCE HOTELS vs. CIM FINANCIAL SERVICES |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |