Correlation Between Citigroup and Dominos Pizza
Can any of the company-specific risk be diversified away by investing in both Citigroup and Dominos Pizza 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 Dominos Pizza into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Dominos Pizza Common, you can compare the effects of market volatilities on Citigroup and Dominos Pizza 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 Dominos Pizza. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Dominos Pizza.
Diversification Opportunities for Citigroup and Dominos Pizza
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Citigroup and Dominos is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Dominos Pizza Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dominos Pizza Common 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 Dominos Pizza. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dominos Pizza Common has no effect on the direction of Citigroup i.e., Citigroup and Dominos Pizza go up and down completely randomly.
Pair Corralation between Citigroup and Dominos Pizza
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.14 times more return on investment than Dominos Pizza. However, Citigroup is 1.14 times more volatile than Dominos Pizza Common. It trades about 0.09 of its potential returns per unit of risk. Dominos Pizza Common is currently generating about -0.05 per unit of risk. If you would invest 6,543 in Citigroup on October 14, 2024 and sell it today you would earn a total of 597.00 from holding Citigroup or generate 9.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Dominos Pizza Common
Performance |
| Timeline |
| Citigroup |
| Dominos Pizza Common |
Citigroup and Dominos Pizza Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Dominos Pizza
The main advantage of trading using opposite Citigroup and Dominos Pizza positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Dominos Pizza 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 Dominos Pizza will offset losses from the drop in Dominos Pizza's long position.| Citigroup vs. Nu Holdings | Citigroup vs. Canadian Imperial Bank | Citigroup vs. Bank of Montreal | Citigroup vs. Bank of Nova |
| Dominos Pizza vs. Chipotle Mexican Grill | Dominos Pizza vs. Yum Brands | Dominos Pizza vs. The Wendys Co | Dominos Pizza vs. Wingstop |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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