Correlation Between Citigroup and UBS AG
Can any of the company-specific risk be diversified away by investing in both Citigroup and UBS AG 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 UBS AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and UBS AG London, you can compare the effects of market volatilities on Citigroup and UBS AG 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 UBS AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and UBS AG.
Diversification Opportunities for Citigroup and UBS AG
Almost no diversification
The 3 months correlation between Citigroup and UBS is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and UBS AG London in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBS AG London 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 UBS AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UBS AG London has no effect on the direction of Citigroup i.e., Citigroup and UBS AG go up and down completely randomly.
Pair Corralation between Citigroup and UBS AG
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.69 times less return on investment than UBS AG. But when comparing it to its historical volatility, Citigroup is 1.13 times less risky than UBS AG. It trades about 0.07 of its potential returns per unit of risk. UBS AG London is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 4,308 in UBS AG London on September 1, 2024 and sell it today you would earn a total of 1,342 from holding UBS AG London or generate 31.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.21% |
| Values | Daily Returns |
Citigroup vs. UBS AG London
Performance |
| Timeline |
| Citigroup |
| UBS AG London |
Citigroup and UBS AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and UBS AG
The main advantage of trading using opposite Citigroup and UBS AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, UBS AG 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 UBS AG will offset losses from the drop in UBS AG's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| UBS AG vs. Freedom Day Dividend | UBS AG vs. iShares MSCI China | UBS AG vs. iShares Dividend and | UBS AG vs. SmartETFs Dividend Builder |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |