Correlation Between Citigroup and Electronic Sensor
Can any of the company-specific risk be diversified away by investing in both Citigroup and Electronic Sensor 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 Electronic Sensor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Electronic Sensor Technology, you can compare the effects of market volatilities on Citigroup and Electronic Sensor 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 Electronic Sensor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Electronic Sensor.
Diversification Opportunities for Citigroup and Electronic Sensor
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Electronic is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Electronic Sensor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Electronic Sensor 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 Electronic Sensor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Electronic Sensor has no effect on the direction of Citigroup i.e., Citigroup and Electronic Sensor go up and down completely randomly.
Pair Corralation between Citigroup and Electronic Sensor
If you would invest 6,361 in Citigroup on September 1, 2024 and sell it today you would earn a total of 726.00 from holding Citigroup or generate 11.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Electronic Sensor Technology
Performance |
| Timeline |
| Citigroup |
| Electronic Sensor |
Citigroup and Electronic Sensor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Electronic Sensor
The main advantage of trading using opposite Citigroup and Electronic Sensor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Electronic Sensor 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 Electronic Sensor will offset losses from the drop in Electronic Sensor's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Electronic Sensor vs. Kraken Robotics | Electronic Sensor vs. SaverOne 2014 Ltd | Electronic Sensor vs. Focus Universal | Electronic Sensor vs. Nanalysis Scientific Corp |
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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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