Correlation Between Citigroup and Conwest Assoc
Can any of the company-specific risk be diversified away by investing in both Citigroup and Conwest Assoc 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 Conwest Assoc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Conwest Assoc Part, you can compare the effects of market volatilities on Citigroup and Conwest Assoc 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 Conwest Assoc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Conwest Assoc.
Diversification Opportunities for Citigroup and Conwest Assoc
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and Conwest is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Conwest Assoc Part in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Conwest Assoc Part 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 Conwest Assoc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Conwest Assoc Part has no effect on the direction of Citigroup i.e., Citigroup and Conwest Assoc go up and down completely randomly.
Pair Corralation between Citigroup and Conwest Assoc
Taking into account the 90-day investment horizon Citigroup is expected to generate 4.79 times more return on investment than Conwest Assoc. However, Citigroup is 4.79 times more volatile than Conwest Assoc Part. It trades about 0.23 of its potential returns per unit of risk. Conwest Assoc Part is currently generating about 0.21 per unit of risk. If you would invest 6,245 in Citigroup on August 25, 2024 and sell it today you would earn a total of 739.00 from holding Citigroup or generate 11.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Conwest Assoc Part
Performance |
| Timeline |
| Citigroup |
| Conwest Assoc Part |
Citigroup and Conwest Assoc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Conwest Assoc
The main advantage of trading using opposite Citigroup and Conwest Assoc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Conwest Assoc 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 Conwest Assoc will offset losses from the drop in Conwest Assoc's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| Conwest Assoc vs. Cintas | Conwest Assoc vs. Thomson Reuters Corp | Conwest Assoc vs. Global Payments | Conwest Assoc vs. RB Global |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |