Correlation Between Citigroup and Fact
Can any of the company-specific risk be diversified away by investing in both Citigroup and Fact 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 Fact into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Fact Inc, you can compare the effects of market volatilities on Citigroup and Fact 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 Fact. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Fact.
Diversification Opportunities for Citigroup and Fact
Pay attention - limited upside
The 3 months correlation between Citigroup and Fact is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Fact Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fact Inc 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 Fact. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fact Inc has no effect on the direction of Citigroup i.e., Citigroup and Fact go up and down completely randomly.
Pair Corralation between Citigroup and Fact
If you would invest 6,083 in Citigroup on August 25, 2024 and sell it today you would earn a total of 901.00 from holding Citigroup or generate 14.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Fact Inc
Performance |
| Timeline |
| Citigroup |
| Fact Inc |
Citigroup and Fact Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Fact
The main advantage of trading using opposite Citigroup and Fact positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Fact 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 Fact will offset losses from the drop in Fact's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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