Correlation Between Citigroup and Sinergi Inti
Can any of the company-specific risk be diversified away by investing in both Citigroup and Sinergi Inti 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 Sinergi Inti into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Sinergi Inti Plastindo, you can compare the effects of market volatilities on Citigroup and Sinergi Inti 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 Sinergi Inti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Sinergi Inti.
Diversification Opportunities for Citigroup and Sinergi Inti
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Sinergi is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Sinergi Inti Plastindo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinergi Inti Plastindo 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 Sinergi Inti. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinergi Inti Plastindo has no effect on the direction of Citigroup i.e., Citigroup and Sinergi Inti go up and down completely randomly.
Pair Corralation between Citigroup and Sinergi Inti
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.42 times more return on investment than Sinergi Inti. However, Citigroup is 2.4 times less risky than Sinergi Inti. It trades about 0.08 of its potential returns per unit of risk. Sinergi Inti Plastindo is currently generating about -0.08 per unit of risk. If you would invest 5,415 in Citigroup on August 28, 2024 and sell it today you would earn a total of 1,660 from holding Citigroup or generate 30.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 92.82% |
| Values | Daily Returns |
Citigroup vs. Sinergi Inti Plastindo
Performance |
| Timeline |
| Citigroup |
| Sinergi Inti Plastindo |
Citigroup and Sinergi Inti Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Sinergi Inti
The main advantage of trading using opposite Citigroup and Sinergi Inti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Sinergi Inti 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 Sinergi Inti will offset losses from the drop in Sinergi Inti'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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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