Correlation Between Citigroup and FF Global
Can any of the company-specific risk be diversified away by investing in both Citigroup and FF Global 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 FF Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and FF Global, you can compare the effects of market volatilities on Citigroup and FF Global 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 FF Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and FF Global.
Diversification Opportunities for Citigroup and FF Global
Almost no diversification
The 3 months correlation between Citigroup and FJ2P is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and FF Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FF Global 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 FF Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FF Global has no effect on the direction of Citigroup i.e., Citigroup and FF Global go up and down completely randomly.
Pair Corralation between Citigroup and FF Global
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.08 times more return on investment than FF Global. However, Citigroup is 1.08 times more volatile than FF Global. It trades about 0.1 of its potential returns per unit of risk. FF Global is currently generating about 0.07 per unit of risk. If you would invest 4,460 in Citigroup on September 12, 2024 and sell it today you would earn a total of 2,790 from holding Citigroup or generate 62.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 58.52% |
| Values | Daily Returns |
Citigroup vs. FF Global
Performance |
| Timeline |
| Citigroup |
| FF Global |
Citigroup and FF Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and FF Global
The main advantage of trading using opposite Citigroup and FF Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, FF Global 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 FF Global will offset losses from the drop in FF Global's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| FF Global vs. Groupama Entreprises N | FF Global vs. Renaissance Europe C | FF Global vs. Superior Plus Corp | FF Global vs. Origin Agritech |
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 Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |