Correlation Between Citigroup and Coastal Contacts
Can any of the company-specific risk be diversified away by investing in both Citigroup and Coastal Contacts 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 Coastal Contacts into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Coastal Contacts, you can compare the effects of market volatilities on Citigroup and Coastal Contacts 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 Coastal Contacts. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Coastal Contacts.
Diversification Opportunities for Citigroup and Coastal Contacts
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Coastal is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Coastal Contacts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coastal Contacts 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 Coastal Contacts. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coastal Contacts has no effect on the direction of Citigroup i.e., Citigroup and Coastal Contacts go up and down completely randomly.
Pair Corralation between Citigroup and Coastal Contacts
If you would invest 6,902 in Citigroup on September 13, 2024 and sell it today you would earn a total of 241.00 from holding Citigroup or generate 3.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Citigroup vs. Coastal Contacts
Performance |
| Timeline |
| Citigroup |
| Coastal Contacts |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Coastal Contacts Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Coastal Contacts
The main advantage of trading using opposite Citigroup and Coastal Contacts positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Coastal Contacts 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 Coastal Contacts will offset losses from the drop in Coastal Contacts' long position.| Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal | Citigroup vs. Bank of Nova |
| Coastal Contacts vs. Sapiens International | Coastal Contacts vs. NetSol Technologies | Coastal Contacts vs. Q2 Holdings | Coastal Contacts vs. Asure Software |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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