Correlation Between Citigroup and EMX Royalty
Can any of the company-specific risk be diversified away by investing in both Citigroup and EMX Royalty 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 EMX Royalty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and EMX Royalty Corp, you can compare the effects of market volatilities on Citigroup and EMX Royalty 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 EMX Royalty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and EMX Royalty.
Diversification Opportunities for Citigroup and EMX Royalty
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Citigroup and EMX is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and EMX Royalty Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EMX Royalty Corp 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 EMX Royalty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EMX Royalty Corp has no effect on the direction of Citigroup i.e., Citigroup and EMX Royalty go up and down completely randomly.
Pair Corralation between Citigroup and EMX Royalty
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.07 times more return on investment than EMX Royalty. However, Citigroup is 1.07 times more volatile than EMX Royalty Corp. It trades about 0.17 of its potential returns per unit of risk. EMX Royalty Corp is currently generating about 0.0 per unit of risk. If you would invest 6,133 in Citigroup on August 28, 2024 and sell it today you would earn a total of 942.00 from holding Citigroup or generate 15.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. EMX Royalty Corp
Performance |
| Timeline |
| Citigroup |
| EMX Royalty Corp |
Citigroup and EMX Royalty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and EMX Royalty
The main advantage of trading using opposite Citigroup and EMX Royalty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, EMX Royalty 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 EMX Royalty will offset losses from the drop in EMX Royalty'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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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