Correlation Between Citigroup and Computer
Can any of the company-specific risk be diversified away by investing in both Citigroup and Computer 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 Computer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Computer And Technologies, you can compare the effects of market volatilities on Citigroup and Computer 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 Computer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Computer.
Diversification Opportunities for Citigroup and Computer
Good diversification
The 3 months correlation between Citigroup and Computer is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Computer And Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Computer And Technologies 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 Computer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Computer And Technologies has no effect on the direction of Citigroup i.e., Citigroup and Computer go up and down completely randomly.
Pair Corralation between Citigroup and Computer
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.15 times less return on investment than Computer. But when comparing it to its historical volatility, Citigroup is 2.74 times less risky than Computer. It trades about 0.09 of its potential returns per unit of risk. Computer And Technologies is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 8.44 in Computer And Technologies on August 27, 2024 and sell it today you would earn a total of 10.56 from holding Computer And Technologies or generate 125.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.16% |
| Values | Daily Returns |
Citigroup vs. Computer And Technologies
Performance |
| Timeline |
| Citigroup |
| Computer And Technologies |
Citigroup and Computer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Computer
The main advantage of trading using opposite Citigroup and Computer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Computer 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 Computer will offset losses from the drop in Computer's long position.| Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal | Citigroup vs. Bank of Nova |
| Computer vs. Accenture plc | Computer vs. Cognizant Technology Solutions | Computer vs. Superior Plus Corp | Computer vs. NMI 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Stocks Directory Find actively traded stocks across global markets |