Correlation Between Citigroup and Oceanic Iron
Can any of the company-specific risk be diversified away by investing in both Citigroup and Oceanic Iron 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 Oceanic Iron into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Oceanic Iron Ore, you can compare the effects of market volatilities on Citigroup and Oceanic Iron 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 Oceanic Iron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Oceanic Iron.
Diversification Opportunities for Citigroup and Oceanic Iron
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Oceanic is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Oceanic Iron Ore in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oceanic Iron Ore 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 Oceanic Iron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oceanic Iron Ore has no effect on the direction of Citigroup i.e., Citigroup and Oceanic Iron go up and down completely randomly.
Pair Corralation between Citigroup and Oceanic Iron
If you would invest 5,890 in Citigroup on September 19, 2024 and sell it today you would earn a total of 1,222 from holding Citigroup or generate 20.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 65.6% |
| Values | Daily Returns |
Citigroup vs. Oceanic Iron Ore
Performance |
| Timeline |
| Citigroup |
| Oceanic Iron Ore |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Oceanic Iron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Oceanic Iron
The main advantage of trading using opposite Citigroup and Oceanic Iron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Oceanic Iron 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 Oceanic Iron will offset losses from the drop in Oceanic Iron's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Oceanic Iron vs. Avarone Metals | Oceanic Iron vs. Aurelia Metals Limited | Oceanic Iron vs. Adriatic Metals PLC | Oceanic Iron vs. Huntsman Exploration |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |