Correlation Between Citigroup and Fintech Ecosystem
Can any of the company-specific risk be diversified away by investing in both Citigroup and Fintech Ecosystem 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 Fintech Ecosystem into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Fintech Ecosystem Development, you can compare the effects of market volatilities on Citigroup and Fintech Ecosystem 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 Fintech Ecosystem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Fintech Ecosystem.
Diversification Opportunities for Citigroup and Fintech Ecosystem
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Fintech is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Fintech Ecosystem Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fintech Ecosystem 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 Fintech Ecosystem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fintech Ecosystem has no effect on the direction of Citigroup i.e., Citigroup and Fintech Ecosystem go up and down completely randomly.
Pair Corralation between Citigroup and Fintech Ecosystem
Taking into account the 90-day investment horizon Citigroup is expected to generate 245.36 times less return on investment than Fintech Ecosystem. But when comparing it to its historical volatility, Citigroup is 118.3 times less risky than Fintech Ecosystem. It trades about 0.08 of its potential returns per unit of risk. Fintech Ecosystem Development is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 13.00 in Fintech Ecosystem Development on September 2, 2024 and sell it today you would lose (12.62) from holding Fintech Ecosystem Development or give up 97.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 38.71% |
| Values | Daily Returns |
Citigroup vs. Fintech Ecosystem Development
Performance |
| Timeline |
| Citigroup |
| Fintech Ecosystem |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Fintech Ecosystem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Fintech Ecosystem
The main advantage of trading using opposite Citigroup and Fintech Ecosystem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Fintech Ecosystem 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 Fintech Ecosystem will offset losses from the drop in Fintech Ecosystem's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Stocks Directory Find actively traded stocks across global markets | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |