Correlation Between Citigroup and COOR Service
Can any of the company-specific risk be diversified away by investing in both Citigroup and COOR Service 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 COOR Service into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and COOR Service Management, you can compare the effects of market volatilities on Citigroup and COOR Service 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 COOR Service. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and COOR Service.
Diversification Opportunities for Citigroup and COOR Service
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and COOR is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and COOR Service Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COOR Service Management 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 COOR Service. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COOR Service Management has no effect on the direction of Citigroup i.e., Citigroup and COOR Service go up and down completely randomly.
Pair Corralation between Citigroup and COOR Service
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.82 times more return on investment than COOR Service. However, Citigroup is 1.22 times less risky than COOR Service. It trades about 0.11 of its potential returns per unit of risk. COOR Service Management is currently generating about -0.14 per unit of risk. If you would invest 6,134 in Citigroup on August 29, 2024 and sell it today you would earn a total of 841.00 from holding Citigroup or generate 13.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 98.46% |
| Values | Daily Returns |
Citigroup vs. COOR Service Management
Performance |
| Timeline |
| Citigroup |
| COOR Service Management |
Citigroup and COOR Service Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and COOR Service
The main advantage of trading using opposite Citigroup and COOR Service positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, COOR Service 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 COOR Service will offset losses from the drop in COOR Service's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| COOR Service vs. Inwido AB | COOR Service vs. Cloetta AB | COOR Service vs. Clas Ohlson AB | COOR Service vs. Bufab Holding AB |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |