Correlation Between Citigroup and Crown Point
Can any of the company-specific risk be diversified away by investing in both Citigroup and Crown Point 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 Crown Point into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Crown Point Energy, you can compare the effects of market volatilities on Citigroup and Crown Point 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 Crown Point. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Crown Point.
Diversification Opportunities for Citigroup and Crown Point
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Crown is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Crown Point Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crown Point Energy 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 Crown Point. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crown Point Energy has no effect on the direction of Citigroup i.e., Citigroup and Crown Point go up and down completely randomly.
Pair Corralation between Citigroup and Crown Point
If you would invest 6,977 in Citigroup on October 23, 2024 and sell it today you would earn a total of 1,190 from holding Citigroup or generate 17.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Citigroup vs. Crown Point Energy
Performance |
| Timeline |
| Citigroup |
| Crown Point Energy |
Citigroup and Crown Point Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Crown Point
The main advantage of trading using opposite Citigroup and Crown Point positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Crown Point 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 Crown Point will offset losses from the drop in Crown Point's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Crown Point vs. Canacol Energy | Crown Point vs. InPlay Oil Corp | Crown Point vs. Cardinal Energy | Crown Point vs. PetroTal Corp |
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 CEOs Directory module to screen CEOs from public companies around the world.
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