Correlation Between Citigroup and Financiere Marjos
Can any of the company-specific risk be diversified away by investing in both Citigroup and Financiere Marjos 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 Financiere Marjos into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Financiere Marjos SA, you can compare the effects of market volatilities on Citigroup and Financiere Marjos 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 Financiere Marjos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Financiere Marjos.
Diversification Opportunities for Citigroup and Financiere Marjos
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Citigroup and Financiere is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Financiere Marjos SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Financiere Marjos 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 Financiere Marjos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Financiere Marjos has no effect on the direction of Citigroup i.e., Citigroup and Financiere Marjos go up and down completely randomly.
Pair Corralation between Citigroup and Financiere Marjos
If you would invest 7.80 in Financiere Marjos SA on November 29, 2024 and sell it today you would earn a total of 0.00 from holding Financiere Marjos SA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Citigroup vs. Financiere Marjos SA
Performance |
| Timeline |
| Citigroup |
| Financiere Marjos |
Citigroup and Financiere Marjos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Financiere Marjos
The main advantage of trading using opposite Citigroup and Financiere Marjos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Financiere Marjos 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 Financiere Marjos will offset losses from the drop in Financiere Marjos' long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Financiere Marjos vs. Fiducial Office Solutions | Financiere Marjos vs. Foncire Euris SA | Financiere Marjos vs. Bernard Loisea | Financiere Marjos vs. Coheris SA |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |