Correlation Between Citigroup and Dice Molecules
Can any of the company-specific risk be diversified away by investing in both Citigroup and Dice Molecules 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 Dice Molecules into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Dice Molecules Holdings, you can compare the effects of market volatilities on Citigroup and Dice Molecules 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 Dice Molecules. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Dice Molecules.
Diversification Opportunities for Citigroup and Dice Molecules
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and Dice is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Dice Molecules Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dice Molecules Holdings 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 Dice Molecules. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dice Molecules Holdings has no effect on the direction of Citigroup i.e., Citigroup and Dice Molecules go up and down completely randomly.
Pair Corralation between Citigroup and Dice Molecules
If you would invest 6,255 in Citigroup on August 24, 2024 and sell it today you would earn a total of 640.00 from holding Citigroup or generate 10.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Citigroup vs. Dice Molecules Holdings
Performance |
| Timeline |
| Citigroup |
| Dice Molecules Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Dice Molecules Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Dice Molecules
The main advantage of trading using opposite Citigroup and Dice Molecules positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Dice Molecules 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 Dice Molecules will offset losses from the drop in Dice Molecules' long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Dice Molecules vs. Nuvalent | Dice Molecules vs. Arcellx | Dice Molecules vs. Vaxcyte | Dice Molecules vs. Viridian Therapeutics |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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