Correlation Between Citigroup and Fluor
Can any of the company-specific risk be diversified away by investing in both Citigroup and Fluor 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 Fluor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Fluor, you can compare the effects of market volatilities on Citigroup and Fluor 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 Fluor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Fluor.
Diversification Opportunities for Citigroup and Fluor
Weak diversification
The 3 months correlation between Citigroup and Fluor is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Fluor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fluor 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 Fluor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fluor has no effect on the direction of Citigroup i.e., Citigroup and Fluor go up and down completely randomly.
Pair Corralation between Citigroup and Fluor
If you would invest 6,122 in Citigroup on August 26, 2024 and sell it today you would earn a total of 862.00 from holding Citigroup or generate 14.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Citigroup vs. Fluor
Performance |
| Timeline |
| Citigroup |
| Fluor |
Citigroup and Fluor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Fluor
The main advantage of trading using opposite Citigroup and Fluor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Fluor 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 Fluor will offset losses from the drop in Fluor's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| Fluor vs. Promotora y Operadora | Fluor vs. OPERADORA DE SITES | Fluor vs. The Select Sector | Fluor vs. iShares Global Timber |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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