Correlation Between Citigroup and Eagle Point
Can any of the company-specific risk be diversified away by investing in both Citigroup and Eagle Point 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 Eagle Point into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Eagle Point Credit, you can compare the effects of market volatilities on Citigroup and Eagle Point 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 Eagle Point. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Eagle Point.
Diversification Opportunities for Citigroup and Eagle Point
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Citigroup and Eagle is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Eagle Point Credit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Point Credit 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 Eagle Point. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Point Credit has no effect on the direction of Citigroup i.e., Citigroup and Eagle Point go up and down completely randomly.
Pair Corralation between Citigroup and Eagle Point
If you would invest 5,415 in Citigroup on August 28, 2024 and sell it today you would earn a total of 1,660 from holding Citigroup or generate 30.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.0% |
| Values | Daily Returns |
Citigroup vs. Eagle Point Credit
Performance |
| Timeline |
| Citigroup |
| Eagle Point Credit |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Citigroup and Eagle Point Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Eagle Point
The main advantage of trading using opposite Citigroup and Eagle Point positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Eagle Point 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 Eagle Point will offset losses from the drop in Eagle Point's long position.| Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal | Citigroup vs. Bank of Nova |
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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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