Correlation Between Citigroup and Tronox Pigmentos
Can any of the company-specific risk be diversified away by investing in both Citigroup and Tronox Pigmentos 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 Tronox Pigmentos into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Tronox Pigmentos do, you can compare the effects of market volatilities on Citigroup and Tronox Pigmentos 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 Tronox Pigmentos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Tronox Pigmentos.
Diversification Opportunities for Citigroup and Tronox Pigmentos
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Tronox is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Tronox Pigmentos do in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tronox Pigmentos 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 Tronox Pigmentos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tronox Pigmentos has no effect on the direction of Citigroup i.e., Citigroup and Tronox Pigmentos go up and down completely randomly.
Pair Corralation between Citigroup and Tronox Pigmentos
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.27 times more return on investment than Tronox Pigmentos. However, Citigroup is 1.27 times more volatile than Tronox Pigmentos do. It trades about 0.2 of its potential returns per unit of risk. Tronox Pigmentos do is currently generating about -0.4 per unit of risk. If you would invest 6,412 in Citigroup on August 30, 2024 and sell it today you would earn a total of 604.00 from holding Citigroup or generate 9.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 91.3% |
| Values | Daily Returns |
Citigroup vs. Tronox Pigmentos do
Performance |
| Timeline |
| Citigroup |
| Tronox Pigmentos |
Citigroup and Tronox Pigmentos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Tronox Pigmentos
The main advantage of trading using opposite Citigroup and Tronox Pigmentos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Tronox Pigmentos 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 Tronox Pigmentos will offset losses from the drop in Tronox Pigmentos' long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Tronox Pigmentos vs. Unipar Carbocloro SA | Tronox Pigmentos vs. Unipar Carbocloro SA | Tronox Pigmentos vs. Klabin SA | Tronox Pigmentos vs. Usinas Siderrgicas de |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Commodity Directory Find actively traded commodities issued by global exchanges |