Correlation Between Citigroup and Corsair Gaming
Can any of the company-specific risk be diversified away by investing in both Citigroup and Corsair Gaming 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 Corsair Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Corsair Gaming, you can compare the effects of market volatilities on Citigroup and Corsair Gaming 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 Corsair Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Corsair Gaming.
Diversification Opportunities for Citigroup and Corsair Gaming
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and Corsair is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Corsair Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corsair Gaming 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 Corsair Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corsair Gaming has no effect on the direction of Citigroup i.e., Citigroup and Corsair Gaming go up and down completely randomly.
Pair Corralation between Citigroup and Corsair Gaming
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.6 times more return on investment than Corsair Gaming. However, Citigroup is 1.67 times less risky than Corsair Gaming. It trades about 0.2 of its potential returns per unit of risk. Corsair Gaming is currently generating about 0.12 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 Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Corsair Gaming
Performance |
| Timeline |
| Citigroup |
| Corsair Gaming |
Citigroup and Corsair Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Corsair Gaming
The main advantage of trading using opposite Citigroup and Corsair Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Corsair Gaming 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 Corsair Gaming will offset losses from the drop in Corsair Gaming's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Corsair Gaming vs. Clover Health Investments | Corsair Gaming vs. Skillz Platform | Corsair Gaming vs. Fubotv Inc |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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