Correlation Between Citigroup and Clever Leaves
Can any of the company-specific risk be diversified away by investing in both Citigroup and Clever Leaves 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 Clever Leaves into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Clever Leaves Holdings, you can compare the effects of market volatilities on Citigroup and Clever Leaves 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 Clever Leaves. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Clever Leaves.
Diversification Opportunities for Citigroup and Clever Leaves
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Citigroup and Clever is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Clever Leaves Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clever Leaves Holdings 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 Clever Leaves. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clever Leaves Holdings has no effect on the direction of Citigroup i.e., Citigroup and Clever Leaves go up and down completely randomly.
Pair Corralation between Citigroup and Clever Leaves
If you would invest 5,405 in Citigroup on August 29, 2024 and sell it today you would earn a total of 1,570 from holding Citigroup or generate 29.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.48% |
| Values | Daily Returns |
Citigroup vs. Clever Leaves Holdings
Performance |
| Timeline |
| Citigroup |
| Clever Leaves Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Clever Leaves Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Clever Leaves
The main advantage of trading using opposite Citigroup and Clever Leaves positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Clever Leaves 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 Clever Leaves will offset losses from the drop in Clever Leaves' long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Clever Leaves vs. Clever Leaves Holdings | Clever Leaves vs. CannBioRx Life Sciences | Clever Leaves vs. Clene Inc | Clever Leaves vs. CuriosityStream |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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