Correlation Between Citigroup and DICKER DATA
Can any of the company-specific risk be diversified away by investing in both Citigroup and DICKER DATA 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 DICKER DATA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and DICKER DATA LTD, you can compare the effects of market volatilities on Citigroup and DICKER DATA 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 DICKER DATA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and DICKER DATA.
Diversification Opportunities for Citigroup and DICKER DATA
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and DICKER is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and DICKER DATA LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DICKER DATA LTD 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 DICKER DATA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DICKER DATA LTD has no effect on the direction of Citigroup i.e., Citigroup and DICKER DATA go up and down completely randomly.
Pair Corralation between Citigroup and DICKER DATA
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.63 times more return on investment than DICKER DATA. However, Citigroup is 1.58 times less risky than DICKER DATA. It trades about 0.08 of its potential returns per unit of risk. DICKER DATA LTD is currently generating about 0.02 per unit of risk. If you would invest 4,544 in Citigroup on September 1, 2024 and sell it today you would earn a total of 2,543 from holding Citigroup or generate 55.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.89% |
| Values | Daily Returns |
Citigroup vs. DICKER DATA LTD
Performance |
| Timeline |
| Citigroup |
| DICKER DATA LTD |
Citigroup and DICKER DATA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and DICKER DATA
The main advantage of trading using opposite Citigroup and DICKER DATA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, DICKER DATA 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 DICKER DATA will offset losses from the drop in DICKER DATA's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| DICKER DATA vs. Japan Post Insurance | DICKER DATA vs. HANOVER INSURANCE | DICKER DATA vs. QBE Insurance Group | DICKER DATA vs. Selective Insurance Group |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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