Correlation Between Citigroup and Earth Alive
Can any of the company-specific risk be diversified away by investing in both Citigroup and Earth Alive 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 Earth Alive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Earth Alive Clean, you can compare the effects of market volatilities on Citigroup and Earth Alive 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 Earth Alive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Earth Alive.
Diversification Opportunities for Citigroup and Earth Alive
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Earth is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Earth Alive Clean in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Earth Alive Clean 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 Earth Alive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Earth Alive Clean has no effect on the direction of Citigroup i.e., Citigroup and Earth Alive go up and down completely randomly.
Pair Corralation between Citigroup and Earth Alive
If you would invest 6,889 in Citigroup on September 14, 2024 and sell it today you would earn a total of 307.00 from holding Citigroup or generate 4.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Citigroup vs. Earth Alive Clean
Performance |
| Timeline |
| Citigroup |
| Earth Alive Clean |
Citigroup and Earth Alive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Earth Alive
The main advantage of trading using opposite Citigroup and Earth Alive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Earth Alive 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 Earth Alive will offset losses from the drop in Earth Alive's long position.| Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal | Citigroup vs. Bank of Nova |
| Earth Alive vs. Orbit Garant Drilling | Earth Alive vs. NextSource Materials | Earth Alive vs. Electra Battery Materials | Earth Alive vs. SalesforceCom CDR |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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