Correlation Between Citigroup and Flushing Financial
Can any of the company-specific risk be diversified away by investing in both Citigroup and Flushing Financial 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 Flushing Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Flushing Financial, you can compare the effects of market volatilities on Citigroup and Flushing Financial 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 Flushing Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Flushing Financial.
Diversification Opportunities for Citigroup and Flushing Financial
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and Flushing is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Flushing Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flushing Financial 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 Flushing Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flushing Financial has no effect on the direction of Citigroup i.e., Citigroup and Flushing Financial go up and down completely randomly.
Pair Corralation between Citigroup and Flushing Financial
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.77 times more return on investment than Flushing Financial. However, Citigroup is 1.31 times less risky than Flushing Financial. It trades about -0.04 of its potential returns per unit of risk. Flushing Financial is currently generating about -0.07 per unit of risk. If you would invest 8,051 in Citigroup on November 28, 2024 and sell it today you would lose (144.00) from holding Citigroup or give up 1.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Flushing Financial
Performance |
| Timeline |
| Citigroup |
| Flushing Financial |
Citigroup and Flushing Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Flushing Financial
The main advantage of trading using opposite Citigroup and Flushing Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Flushing Financial 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 Flushing Financial will offset losses from the drop in Flushing Financial's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Flushing Financial vs. Independent Bank | Flushing Financial vs. First Financial Bancorp | Flushing Financial vs. Lakeland Financial | Flushing Financial vs. National Bank 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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