Correlation Between Citigroup and Clicks
Can any of the company-specific risk be diversified away by investing in both Citigroup and Clicks 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 Clicks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Clicks, you can compare the effects of market volatilities on Citigroup and Clicks 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 Clicks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Clicks.
Diversification Opportunities for Citigroup and Clicks
Very weak diversification
The 3 months correlation between Citigroup and Clicks is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Clicks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clicks 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 Clicks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clicks has no effect on the direction of Citigroup i.e., Citigroup and Clicks go up and down completely randomly.
Pair Corralation between Citigroup and Clicks
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.77 times more return on investment than Clicks. However, Citigroup is 1.77 times more volatile than Clicks. It trades about 0.25 of its potential returns per unit of risk. Clicks is currently generating about 0.11 per unit of risk. If you would invest 6,360 in Citigroup on August 28, 2024 and sell it today you would earn a total of 715.00 from holding Citigroup or generate 11.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Clicks
Performance |
| Timeline |
| Citigroup |
| Clicks |
Citigroup and Clicks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Clicks
The main advantage of trading using opposite Citigroup and Clicks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Clicks 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 Clicks will offset losses from the drop in Clicks' long position.| Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal | Citigroup vs. Bank of Nova |
| Clicks vs. Centaur Bci Balanced | Clicks vs. Sabvest Capital | Clicks vs. Growthpoint Properties | Clicks vs. Bowler Metcalf |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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