Correlation Between Citigroup and Essity AB
Specify exactly 2 symbols:
By analyzing existing cross correlation between Citigroup and Essity AB, you can compare the effects of market volatilities on Citigroup and Essity AB 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 Essity AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Essity AB.
Diversification Opportunities for Citigroup and Essity AB
Pay attention - limited upside
The 3 months correlation between Citigroup and Essity is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Essity AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Essity 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 Essity AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Essity AB has no effect on the direction of Citigroup i.e., Citigroup and Essity AB go up and down completely randomly.
Pair Corralation between Citigroup and Essity AB
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.6 times more return on investment than Essity AB. However, Citigroup is 1.6 times more volatile than Essity AB. It trades about 0.12 of its potential returns per unit of risk. Essity AB is currently generating about 0.07 per unit of risk. If you would invest 4,445 in Citigroup on August 26, 2024 and sell it today you would earn a total of 2,539 from holding Citigroup or generate 57.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Essity AB
Performance |
| Timeline |
| Citigroup |
| Essity AB |
Citigroup and Essity AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Essity AB
The main advantage of trading using opposite Citigroup and Essity AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Essity AB 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 Essity AB will offset losses from the drop in Essity AB's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| Essity AB vs. Mendus AB | Essity AB vs. JonDeTech Sensors | Essity AB vs. Nexam Chemical Holding | Essity AB vs. Lohilo Foods 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |