Correlation Between Citigroup and Filo Mining
Can any of the company-specific risk be diversified away by investing in both Citigroup and Filo Mining 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 Filo Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Filo Mining Corp, you can compare the effects of market volatilities on Citigroup and Filo Mining 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 Filo Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Filo Mining.
Diversification Opportunities for Citigroup and Filo Mining
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and Filo is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Filo Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Filo Mining Corp 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 Filo Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Filo Mining Corp has no effect on the direction of Citigroup i.e., Citigroup and Filo Mining go up and down completely randomly.
Pair Corralation between Citigroup and Filo Mining
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.97 times more return on investment than Filo Mining. However, Citigroup is 1.97 times more volatile than Filo Mining Corp. It trades about 0.23 of its potential returns per unit of risk. Filo Mining Corp is currently generating about 0.02 per unit of risk. If you would invest 6,393 in Citigroup on August 31, 2024 and sell it today you would earn a total of 694.00 from holding Citigroup or generate 10.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Filo Mining Corp
Performance |
| Timeline |
| Citigroup |
| Filo Mining Corp |
Citigroup and Filo Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Filo Mining
The main advantage of trading using opposite Citigroup and Filo Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Filo Mining 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 Filo Mining will offset losses from the drop in Filo Mining's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Filo Mining vs. Boliden AB | Filo Mining vs. KABE Group AB | Filo Mining vs. IAR Systems Group | Filo Mining vs. Norva24 Group AB |
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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