Correlation Between Citigroup and Elbit Imaging
Can any of the company-specific risk be diversified away by investing in both Citigroup and Elbit Imaging 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 Elbit Imaging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Elbit Imaging, you can compare the effects of market volatilities on Citigroup and Elbit Imaging 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 Elbit Imaging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Elbit Imaging.
Diversification Opportunities for Citigroup and Elbit Imaging
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Elbit is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Elbit Imaging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elbit Imaging 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 Elbit Imaging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elbit Imaging has no effect on the direction of Citigroup i.e., Citigroup and Elbit Imaging go up and down completely randomly.
Pair Corralation between Citigroup and Elbit Imaging
If you would invest (100.00) in Elbit Imaging on January 11, 2025 and sell it today you would earn a total of 100.00 from holding Elbit Imaging or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Citigroup vs. Elbit Imaging
Performance |
| Timeline |
| Citigroup |
| Elbit Imaging |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Citigroup and Elbit Imaging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Elbit Imaging
The main advantage of trading using opposite Citigroup and Elbit Imaging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Elbit Imaging 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 Elbit Imaging will offset losses from the drop in Elbit Imaging's long position.| Citigroup vs. Barclays PLC ADR | Citigroup vs. ING Group NV | Citigroup vs. Banco Santander SA | Citigroup vs. HSBC Holdings PLC |
| Elbit Imaging vs. Edwards Lifesciences Corp | Elbit Imaging vs. Medtronic PLC | Elbit Imaging vs. Abbott Laboratories | Elbit Imaging vs. Boston Scientific Corp |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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