Correlation Between Citigroup and Everi Holdings
Can any of the company-specific risk be diversified away by investing in both Citigroup and Everi Holdings 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 Everi Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Everi Holdings, you can compare the effects of market volatilities on Citigroup and Everi Holdings 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 Everi Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Everi Holdings.
Diversification Opportunities for Citigroup and Everi Holdings
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and Everi is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Everi Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Everi Holdings 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 Everi Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Everi Holdings has no effect on the direction of Citigroup i.e., Citigroup and Everi Holdings go up and down completely randomly.
Pair Corralation between Citigroup and Everi Holdings
Taking into account the 90-day investment horizon Citigroup is expected to generate 11.18 times more return on investment than Everi Holdings. However, Citigroup is 11.18 times more volatile than Everi Holdings. It trades about 0.25 of its potential returns per unit of risk. Everi Holdings is currently generating about 0.19 per unit of risk. If you would invest 6,360 in Citigroup on August 27, 2024 and sell it today you would earn a total of 715.00 from holding Citigroup or generate 11.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Everi Holdings
Performance |
| Timeline |
| Citigroup |
| Everi Holdings |
Citigroup and Everi Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Everi Holdings
The main advantage of trading using opposite Citigroup and Everi Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Everi Holdings 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 Everi Holdings will offset losses from the drop in Everi Holdings' long position.| Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal | Citigroup vs. Bank of Nova |
| Everi Holdings vs. Accel Entertainment | Everi Holdings vs. Light Wonder | Everi Holdings vs. Inspired Entertainment | Everi Holdings vs. International Game Technology |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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