Correlation Between Citigroup and ESI Environmental
Can any of the company-specific risk be diversified away by investing in both Citigroup and ESI Environmental 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 ESI Environmental into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and ESI Environmental Sensors, you can compare the effects of market volatilities on Citigroup and ESI Environmental 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 ESI Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and ESI Environmental.
Diversification Opportunities for Citigroup and ESI Environmental
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and ESI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and ESI Environmental Sensors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ESI Environmental Sensors 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 ESI Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ESI Environmental Sensors has no effect on the direction of Citigroup i.e., Citigroup and ESI Environmental go up and down completely randomly.
Pair Corralation between Citigroup and ESI Environmental
If you would invest 6,842 in Citigroup on October 20, 2024 and sell it today you would earn a total of 1,157 from holding Citigroup or generate 16.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Citigroup vs. ESI Environmental Sensors
Performance |
| Timeline |
| Citigroup |
| ESI Environmental Sensors |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and ESI Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and ESI Environmental
The main advantage of trading using opposite Citigroup and ESI Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, ESI Environmental 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 ESI Environmental will offset losses from the drop in ESI Environmental's long position.| Citigroup vs. Bank of Montreal | Citigroup vs. Canadian Imperial Bank | Citigroup vs. Bank of Nova | Citigroup vs. JPMorgan Chase Co |
| ESI Environmental vs. CenterPoint Energy | ESI Environmental vs. Forsys Metals Corp | ESI Environmental vs. Harmony Gold Mining | ESI Environmental vs. Enel Chile SA |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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