Correlation Between Citigroup and 225 ENBW
Can any of the company-specific risk be diversified away by investing in both Citigroup and 225 ENBW 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 225 ENBW into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and 225 ENBW 23, you can compare the effects of market volatilities on Citigroup and 225 ENBW 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 225 ENBW. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and 225 ENBW.
Diversification Opportunities for Citigroup and 225 ENBW
Pay attention - limited upside
The 3 months correlation between Citigroup and 225 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and 225 ENBW 23 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 225 ENBW 23 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 225 ENBW. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 225 ENBW 23 has no effect on the direction of Citigroup i.e., Citigroup and 225 ENBW go up and down completely randomly.
Pair Corralation between Citigroup and 225 ENBW
If you would invest 4,325 in Citigroup on September 23, 2024 and sell it today you would earn a total of 2,594 from holding Citigroup or generate 59.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Citigroup vs. 225 ENBW 23
Performance |
| Timeline |
| Citigroup |
| 225 ENBW 23 |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and 225 ENBW Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and 225 ENBW
The main advantage of trading using opposite Citigroup and 225 ENBW positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, 225 ENBW 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 225 ENBW will offset losses from the drop in 225 ENBW's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. Canadian Imperial Bank | Citigroup vs. Bank of Montreal |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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