Correlation Between Citigroup and Cimpress
Can any of the company-specific risk be diversified away by investing in both Citigroup and Cimpress 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 Cimpress into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Cimpress NV, you can compare the effects of market volatilities on Citigroup and Cimpress 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 Cimpress. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Cimpress.
Diversification Opportunities for Citigroup and Cimpress
Very good diversification
The 3 months correlation between Citigroup and Cimpress is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Cimpress NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cimpress NV 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 Cimpress. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cimpress NV has no effect on the direction of Citigroup i.e., Citigroup and Cimpress go up and down completely randomly.
Pair Corralation between Citigroup and Cimpress
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.68 times more return on investment than Cimpress. However, Citigroup is 1.47 times less risky than Cimpress. It trades about 0.21 of its potential returns per unit of risk. Cimpress NV is currently generating about 0.09 per unit of risk. If you would invest 6,255 in Citigroup on August 24, 2024 and sell it today you would earn a total of 640.00 from holding Citigroup or generate 10.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Cimpress NV
Performance |
| Timeline |
| Citigroup |
| Cimpress NV |
Citigroup and Cimpress Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Cimpress
The main advantage of trading using opposite Citigroup and Cimpress positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Cimpress 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 Cimpress will offset losses from the drop in Cimpress' long position.| Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Royal Bank of | Citigroup vs. JPMorgan Chase Co |
| Cimpress vs. Innovid Corp | Cimpress vs. Deluxe | Cimpress vs. Omnicom Group | Cimpress vs. Emerald Expositions Events |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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