Correlation Between Citigroup and Eventide Global
Can any of the company-specific risk be diversified away by investing in both Citigroup and Eventide Global 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 Eventide Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Eventide Global Dividend, you can compare the effects of market volatilities on Citigroup and Eventide Global 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 Eventide Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Eventide Global.
Diversification Opportunities for Citigroup and Eventide Global
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and Eventide is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Eventide Global Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eventide Global Dividend 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 Eventide Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eventide Global Dividend has no effect on the direction of Citigroup i.e., Citigroup and Eventide Global go up and down completely randomly.
Pair Corralation between Citigroup and Eventide Global
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.83 times more return on investment than Eventide Global. However, Citigroup is 1.83 times more volatile than Eventide Global Dividend. It trades about 0.08 of its potential returns per unit of risk. Eventide Global Dividend is currently generating about 0.12 per unit of risk. If you would invest 4,544 in Citigroup on September 1, 2024 and sell it today you would earn a total of 2,543 from holding Citigroup or generate 55.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Citigroup vs. Eventide Global Dividend
Performance |
| Timeline |
| Citigroup |
| Eventide Global Dividend |
Citigroup and Eventide Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Eventide Global
The main advantage of trading using opposite Citigroup and Eventide Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Eventide Global 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 Eventide Global will offset losses from the drop in Eventide Global's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Eventide Global vs. T Rowe Price | Eventide Global vs. Legg Mason Bw | Eventide Global vs. Americafirst Large Cap | Eventide Global vs. Dodge Cox Stock |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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