Correlation Between Citigroup and Chiles Offshore
Can any of the company-specific risk be diversified away by investing in both Citigroup and Chiles Offshore 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 Chiles Offshore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Chiles Offshore, you can compare the effects of market volatilities on Citigroup and Chiles Offshore 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 Chiles Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Chiles Offshore.
Diversification Opportunities for Citigroup and Chiles Offshore
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Chiles is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Chiles Offshore in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chiles Offshore 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 Chiles Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chiles Offshore has no effect on the direction of Citigroup i.e., Citigroup and Chiles Offshore go up and down completely randomly.
Pair Corralation between Citigroup and Chiles Offshore
If you would invest 4,525 in Citigroup on August 31, 2024 and sell it today you would earn a total of 2,562 from holding Citigroup or generate 56.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Citigroup vs. Chiles Offshore
Performance |
| Timeline |
| Citigroup |
| Chiles Offshore |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Chiles Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Chiles Offshore
The main advantage of trading using opposite Citigroup and Chiles Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Chiles Offshore 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 Chiles Offshore will offset losses from the drop in Chiles Offshore's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Chiles Offshore vs. ServiceNow | Chiles Offshore vs. Dave Busters Entertainment | Chiles Offshore vs. Dennys Corp | Chiles Offshore vs. Q2 Holdings |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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