Correlation Between Citigroup and Farmers Edge
Can any of the company-specific risk be diversified away by investing in both Citigroup and Farmers Edge 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 Farmers Edge into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Farmers Edge, you can compare the effects of market volatilities on Citigroup and Farmers Edge 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 Farmers Edge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Farmers Edge.
Diversification Opportunities for Citigroup and Farmers Edge
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Citigroup and Farmers is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Farmers Edge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Farmers Edge 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 Farmers Edge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Farmers Edge has no effect on the direction of Citigroup i.e., Citigroup and Farmers Edge go up and down completely randomly.
Pair Corralation between Citigroup and Farmers Edge
If you would invest 6,092 in Citigroup on November 2, 2024 and sell it today you would earn a total of 2,094 from holding Citigroup or generate 34.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.97% |
| Values | Daily Returns |
Citigroup vs. Farmers Edge
Performance |
| Timeline |
| Citigroup |
| Farmers Edge |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Farmers Edge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Farmers Edge
The main advantage of trading using opposite Citigroup and Farmers Edge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Farmers Edge 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 Farmers Edge will offset losses from the drop in Farmers Edge's long position.| Citigroup vs. Royal Bank of | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Canadian Imperial Bank |
| Farmers Edge vs. RenoWorks Software | Farmers Edge vs. 01 Communique Laboratory | Farmers Edge vs. RESAAS Services | Farmers Edge vs. LifeSpeak |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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