Correlation Between Citigroup and Turism Hotelur
Can any of the company-specific risk be diversified away by investing in both Citigroup and Turism Hotelur 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 Turism Hotelur into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Turism Hotelur, you can compare the effects of market volatilities on Citigroup and Turism Hotelur 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 Turism Hotelur. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Turism Hotelur.
Diversification Opportunities for Citigroup and Turism Hotelur
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and Turism is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Turism Hotelur in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turism Hotelur 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 Turism Hotelur. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turism Hotelur has no effect on the direction of Citigroup i.e., Citigroup and Turism Hotelur go up and down completely randomly.
Pair Corralation between Citigroup and Turism Hotelur
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.24 times less return on investment than Turism Hotelur. But when comparing it to its historical volatility, Citigroup is 1.35 times less risky than Turism Hotelur. It trades about 0.21 of its potential returns per unit of risk. Turism Hotelur is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 40.00 in Turism Hotelur on August 24, 2024 and sell it today you would earn a total of 5.00 from holding Turism Hotelur or generate 12.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Turism Hotelur
Performance |
| Timeline |
| Citigroup |
| Turism Hotelur |
Citigroup and Turism Hotelur Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Turism Hotelur
The main advantage of trading using opposite Citigroup and Turism Hotelur positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Turism Hotelur 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 Turism Hotelur will offset losses from the drop in Turism Hotelur's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Turism Hotelur vs. Infinity Capital Investments | Turism Hotelur vs. Digi Communications NV | Turism Hotelur vs. GRUPUL INDUSTRIAL ELECTROCONTACT | Turism Hotelur vs. IM Vinaria Purcari |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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