Correlation Between Citigroup and Faction Investment
Can any of the company-specific risk be diversified away by investing in both Citigroup and Faction Investment 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 Faction Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Faction Investment Group, you can compare the effects of market volatilities on Citigroup and Faction Investment 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 Faction Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Faction Investment.
Diversification Opportunities for Citigroup and Faction Investment
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Faction is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Faction Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Faction Investment 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 Faction Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Faction Investment has no effect on the direction of Citigroup i.e., Citigroup and Faction Investment go up and down completely randomly.
Pair Corralation between Citigroup and Faction Investment
If you would invest 5,415 in Citigroup on August 28, 2024 and sell it today you would earn a total of 1,660 from holding Citigroup or generate 30.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.04% |
| Values | Daily Returns |
Citigroup vs. Faction Investment Group
Performance |
| Timeline |
| Citigroup |
| Faction Investment |
Citigroup and Faction Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Faction Investment
The main advantage of trading using opposite Citigroup and Faction Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Faction Investment 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 Faction Investment will offset losses from the drop in Faction Investment's long position.| Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal | Citigroup vs. Bank of Nova |
| Faction Investment vs. NVIDIA CDR | Faction Investment vs. Apple Inc CDR | Faction Investment vs. Microsoft Corp CDR | Faction Investment vs. Amazon CDR |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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