Correlation Between Citigroup and Dream Industrial
Can any of the company-specific risk be diversified away by investing in both Citigroup and Dream Industrial 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 Dream Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Dream Industrial Real, you can compare the effects of market volatilities on Citigroup and Dream Industrial 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 Dream Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Dream Industrial.
Diversification Opportunities for Citigroup and Dream Industrial
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Dream is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Dream Industrial Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dream Industrial Real 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 Dream Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dream Industrial Real has no effect on the direction of Citigroup i.e., Citigroup and Dream Industrial go up and down completely randomly.
Pair Corralation between Citigroup and Dream Industrial
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.87 times more return on investment than Dream Industrial. However, Citigroup is 1.14 times less risky than Dream Industrial. It trades about 0.02 of its potential returns per unit of risk. Dream Industrial Real is currently generating about -0.4 per unit of risk. If you would invest 6,895 in Citigroup on September 22, 2024 and sell it today you would earn a total of 24.00 from holding Citigroup or generate 0.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Dream Industrial Real
Performance |
| Timeline |
| Citigroup |
| Dream Industrial Real |
Citigroup and Dream Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Dream Industrial
The main advantage of trading using opposite Citigroup and Dream Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Dream Industrial 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 Dream Industrial will offset losses from the drop in Dream Industrial's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Dream Industrial vs. Ashford Hospitality Trust | Dream Industrial vs. Ashford Hospitality Trust | Dream Industrial vs. Braemar Hotels Resorts | Dream Industrial vs. Braemar Hotels Resorts |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |