Correlation Between Citigroup and Capital Senior
Can any of the company-specific risk be diversified away by investing in both Citigroup and Capital Senior 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 Capital Senior into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Capital Senior Living, you can compare the effects of market volatilities on Citigroup and Capital Senior 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 Capital Senior. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Capital Senior.
Diversification Opportunities for Citigroup and Capital Senior
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Capital is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Capital Senior Living in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capital Senior Living 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 Capital Senior. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capital Senior Living has no effect on the direction of Citigroup i.e., Citigroup and Capital Senior go up and down completely randomly.
Pair Corralation between Citigroup and Capital Senior
If you would invest 5,422 in Citigroup on August 25, 2024 and sell it today you would earn a total of 1,562 from holding Citigroup or generate 28.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Citigroup vs. Capital Senior Living
Performance |
| Timeline |
| Citigroup |
| Capital Senior Living |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Capital Senior Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Capital Senior
The main advantage of trading using opposite Citigroup and Capital Senior positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Capital Senior 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 Capital Senior will offset losses from the drop in Capital Senior's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| Capital Senior vs. Boot Barn Holdings | Capital Senior vs. Teleflex Incorporated | Capital Senior vs. Victorias Secret Co | Capital Senior vs. Duluth 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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