Correlation Between Citigroup and Digitalist Group
Can any of the company-specific risk be diversified away by investing in both Citigroup and Digitalist Group 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 Digitalist Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Digitalist Group Oyj, you can compare the effects of market volatilities on Citigroup and Digitalist Group 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 Digitalist Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Digitalist Group.
Diversification Opportunities for Citigroup and Digitalist Group
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Citigroup and Digitalist is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Digitalist Group Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digitalist Group Oyj 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 Digitalist Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digitalist Group Oyj has no effect on the direction of Citigroup i.e., Citigroup and Digitalist Group go up and down completely randomly.
Pair Corralation between Citigroup and Digitalist Group
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.7 times less return on investment than Digitalist Group. But when comparing it to its historical volatility, Citigroup is 1.42 times less risky than Digitalist Group. It trades about 0.21 of its potential returns per unit of risk. Digitalist Group Oyj is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 1.58 in Digitalist Group Oyj on August 24, 2024 and sell it today you would earn a total of 0.28 from holding Digitalist Group Oyj or generate 17.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Digitalist Group Oyj
Performance |
| Timeline |
| Citigroup |
| Digitalist Group Oyj |
Citigroup and Digitalist Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Digitalist Group
The main advantage of trading using opposite Citigroup and Digitalist Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Digitalist Group 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 Digitalist Group will offset losses from the drop in Digitalist Group's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Digitalist Group vs. Tulikivi Oyj A | Digitalist Group vs. Afarak Group Oyj | Digitalist Group vs. Tecnotree Oyj | Digitalist Group vs. Solteq PLC |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |