Correlation Between Citigroup and Entera Bio
Can any of the company-specific risk be diversified away by investing in both Citigroup and Entera Bio 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 Entera Bio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Entera Bio, you can compare the effects of market volatilities on Citigroup and Entera Bio 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 Entera Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Entera Bio.
Diversification Opportunities for Citigroup and Entera Bio
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Citigroup and Entera is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Entera Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Entera Bio 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 Entera Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Entera Bio has no effect on the direction of Citigroup i.e., Citigroup and Entera Bio go up and down completely randomly.
Pair Corralation between Citigroup and Entera Bio
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.82 times more return on investment than Entera Bio. However, Citigroup is 1.22 times less risky than Entera Bio. It trades about 0.24 of its potential returns per unit of risk. Entera Bio is currently generating about -0.21 per unit of risk. If you would invest 6,245 in Citigroup on August 25, 2024 and sell it today you would earn a total of 739.00 from holding Citigroup or generate 11.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Entera Bio
Performance |
| Timeline |
| Citigroup |
| Entera Bio |
Citigroup and Entera Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Entera Bio
The main advantage of trading using opposite Citigroup and Entera Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Entera Bio 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 Entera Bio will offset losses from the drop in Entera Bio's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Royal Bank of | Citigroup vs. JPMorgan Chase Co | Citigroup vs. Nu Holdings |
| Entera Bio vs. NLS Pharmaceutics AG | Entera Bio vs. Vaccinex | Entera Bio vs. Alterity Therapeutics | Entera Bio vs. Immutep Ltd ADR |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |