Correlation Between Citigroup and Episurf Medical
Can any of the company-specific risk be diversified away by investing in both Citigroup and Episurf Medical 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 Episurf Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Episurf Medical AB, you can compare the effects of market volatilities on Citigroup and Episurf Medical 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 Episurf Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Episurf Medical.
Diversification Opportunities for Citigroup and Episurf Medical
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Citigroup and Episurf is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Episurf Medical AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Episurf Medical AB 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 Episurf Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Episurf Medical AB has no effect on the direction of Citigroup i.e., Citigroup and Episurf Medical go up and down completely randomly.
Pair Corralation between Citigroup and Episurf Medical
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.09 times less return on investment than Episurf Medical. But when comparing it to its historical volatility, Citigroup is 2.75 times less risky than Episurf Medical. It trades about 0.2 of its potential returns per unit of risk. Episurf Medical AB is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 14.00 in Episurf Medical AB on August 30, 2024 and sell it today you would earn a total of 1.00 from holding Episurf Medical AB or generate 7.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Episurf Medical AB
Performance |
| Timeline |
| Citigroup |
| Episurf Medical AB |
Citigroup and Episurf Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Episurf Medical
The main advantage of trading using opposite Citigroup and Episurf Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Episurf Medical 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 Episurf Medical will offset losses from the drop in Episurf Medical's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Episurf Medical vs. KABE Group AB | Episurf Medical vs. IAR Systems Group | Episurf Medical vs. Mekonomen AB | Episurf Medical vs. eEducation Albert AB |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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