Correlation Between Citigroup and BellRock Brands
Can any of the company-specific risk be diversified away by investing in both Citigroup and BellRock Brands 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 BellRock Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and BellRock Brands, you can compare the effects of market volatilities on Citigroup and BellRock Brands 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 BellRock Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and BellRock Brands.
Diversification Opportunities for Citigroup and BellRock Brands
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and BellRock is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and BellRock Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BellRock Brands 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 BellRock Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BellRock Brands has no effect on the direction of Citigroup i.e., Citigroup and BellRock Brands go up and down completely randomly.
Pair Corralation between Citigroup and BellRock Brands
If you would invest 6,977 in Citigroup on October 23, 2024 and sell it today you would earn a total of 1,190 from holding Citigroup or generate 17.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Citigroup vs. BellRock Brands
Performance |
| Timeline |
| Citigroup |
| BellRock Brands |
Citigroup and BellRock Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and BellRock Brands
The main advantage of trading using opposite Citigroup and BellRock Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, BellRock Brands 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 BellRock Brands will offset losses from the drop in BellRock Brands' long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| BellRock Brands vs. THC Therapeutics | BellRock Brands vs. Elixinol Global | BellRock Brands vs. Eisai Co | BellRock Brands vs. Mc Endvrs |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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