Correlation Between Citigroup and Enbridge Pref
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By analyzing existing cross correlation between Citigroup and Enbridge Pref 11, you can compare the effects of market volatilities on Citigroup and Enbridge Pref 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 Enbridge Pref. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Enbridge Pref.
Diversification Opportunities for Citigroup and Enbridge Pref
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Citigroup and Enbridge is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Enbridge Pref 11 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enbridge Pref 11 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 Enbridge Pref. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enbridge Pref 11 has no effect on the direction of Citigroup i.e., Citigroup and Enbridge Pref go up and down completely randomly.
Pair Corralation between Citigroup and Enbridge Pref
Taking into account the 90-day investment horizon Citigroup is expected to generate 3.87 times more return on investment than Enbridge Pref. However, Citigroup is 3.87 times more volatile than Enbridge Pref 11. It trades about 0.25 of its potential returns per unit of risk. Enbridge Pref 11 is currently generating about 0.12 per unit of risk. If you would invest 6,360 in Citigroup on August 27, 2024 and sell it today you would earn a total of 715.00 from holding Citigroup or generate 11.24% 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. Enbridge Pref 11
Performance |
| Timeline |
| Citigroup |
| Enbridge Pref 11 |
Citigroup and Enbridge Pref Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Enbridge Pref
The main advantage of trading using opposite Citigroup and Enbridge Pref positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Enbridge Pref 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 Enbridge Pref will offset losses from the drop in Enbridge Pref's long position.| Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal | Citigroup vs. Bank of Nova |
| Enbridge Pref vs. Precious Metals And | Enbridge Pref vs. Advent Wireless | Enbridge Pref vs. Major Drilling Group | Enbridge Pref vs. East Side Games |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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