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
Excellent diversification
The 3 months correlation between Citigroup and Essity is -0.61. 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 1.47 times more return on investment than Essity AB. However, Citigroup is 1.47 times more volatile than Essity AB. It trades about 0.07 of its potential returns per unit of risk. Essity AB is currently generating about 0.02 per unit of risk. If you would invest 4,746 in Citigroup on November 2, 2024 and sell it today you would earn a total of 3,397 from holding Citigroup or generate 71.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| 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. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Essity AB vs. Svenska Cellulosa Aktiebolaget | Essity AB vs. ASSA ABLOY AB | Essity AB vs. AB Electrolux | Essity AB vs. AB SKF |
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.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |