Correlation Between Citigroup and Citycon Oyj
Can any of the company-specific risk be diversified away by investing in both Citigroup and Citycon Oyj 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 Citycon Oyj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Citycon Oyj, you can compare the effects of market volatilities on Citigroup and Citycon Oyj 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 Citycon Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Citycon Oyj.
Diversification Opportunities for Citigroup and Citycon Oyj
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Citycon is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Citycon Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citycon Oyj 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 Citycon Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citycon Oyj has no effect on the direction of Citigroup i.e., Citigroup and Citycon Oyj go up and down completely randomly.
Pair Corralation between Citigroup and Citycon Oyj
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.17 times more return on investment than Citycon Oyj. However, Citigroup is 1.17 times more volatile than Citycon Oyj. It trades about 0.23 of its potential returns per unit of risk. Citycon Oyj is currently generating about -0.19 per unit of risk. If you would invest 6,360 in Citigroup on August 27, 2024 and sell it today you would earn a total of 624.00 from holding Citigroup or generate 9.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Citycon Oyj
Performance |
| Timeline |
| Citigroup |
| Citycon Oyj |
Citigroup and Citycon Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Citycon Oyj
The main advantage of trading using opposite Citigroup and Citycon Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Citycon Oyj 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 Citycon Oyj will offset losses from the drop in Citycon Oyj's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| Citycon Oyj vs. Sampo Oyj A | Citycon Oyj vs. Tokmanni Group Oyj | Citycon Oyj vs. Nordea Bank Abp | Citycon Oyj vs. Telia Company 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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