Correlation Between Citigroup and C21 Investments
Can any of the company-specific risk be diversified away by investing in both Citigroup and C21 Investments 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 C21 Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and C21 Investments, you can compare the effects of market volatilities on Citigroup and C21 Investments 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 C21 Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and C21 Investments.
Diversification Opportunities for Citigroup and C21 Investments
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Citigroup and C21 is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and C21 Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on C21 Investments 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 C21 Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of C21 Investments has no effect on the direction of Citigroup i.e., Citigroup and C21 Investments go up and down completely randomly.
Pair Corralation between Citigroup and C21 Investments
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.26 times more return on investment than C21 Investments. However, Citigroup is 3.89 times less risky than C21 Investments. It trades about 0.07 of its potential returns per unit of risk. C21 Investments is currently generating about 0.0 per unit of risk. If you would invest 6,117 in Citigroup on August 29, 2024 and sell it today you would earn a total of 899.00 from holding Citigroup or generate 14.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. C21 Investments
Performance |
| Timeline |
| Citigroup |
| C21 Investments |
Citigroup and C21 Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and C21 Investments
The main advantage of trading using opposite Citigroup and C21 Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, C21 Investments 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 C21 Investments will offset losses from the drop in C21 Investments' long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| C21 Investments vs. Green Cures Botanical | C21 Investments vs. Cann American Corp | C21 Investments vs. Rimrock Gold Corp | C21 Investments vs. Galexxy 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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