Correlation Between Citigroup and Coala Life
Can any of the company-specific risk be diversified away by investing in both Citigroup and Coala Life 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 Coala Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Coala Life Group, you can compare the effects of market volatilities on Citigroup and Coala Life 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 Coala Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Coala Life.
Diversification Opportunities for Citigroup and Coala Life
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Coala is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Coala Life Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coala Life Group 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 Coala Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coala Life Group has no effect on the direction of Citigroup i.e., Citigroup and Coala Life go up and down completely randomly.
Pair Corralation between Citigroup and Coala Life
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.25 times more return on investment than Coala Life. However, Citigroup is 4.07 times less risky than Coala Life. It trades about 0.11 of its potential returns per unit of risk. Coala Life Group is currently generating about -0.08 per unit of risk. If you would invest 4,642 in Citigroup on September 4, 2024 and sell it today you would earn a total of 2,497 from holding Citigroup or generate 53.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.38% |
| Values | Daily Returns |
Citigroup vs. Coala Life Group
Performance |
| Timeline |
| Citigroup |
| Coala Life Group |
Citigroup and Coala Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Coala Life
The main advantage of trading using opposite Citigroup and Coala Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Coala Life 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 Coala Life will offset losses from the drop in Coala Life's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Coala Life vs. Kambi Group PLC | Coala Life vs. Bambuser AB | Coala Life vs. Evolution AB | Coala Life vs. Zaptec AS |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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