Correlation Between Citigroup and Fulcrum Metals
Can any of the company-specific risk be diversified away by investing in both Citigroup and Fulcrum Metals 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 Fulcrum Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Fulcrum Metals PLC, you can compare the effects of market volatilities on Citigroup and Fulcrum Metals 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 Fulcrum Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Fulcrum Metals.
Diversification Opportunities for Citigroup and Fulcrum Metals
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Citigroup and Fulcrum is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Fulcrum Metals PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fulcrum Metals PLC 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 Fulcrum Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fulcrum Metals PLC has no effect on the direction of Citigroup i.e., Citigroup and Fulcrum Metals go up and down completely randomly.
Pair Corralation between Citigroup and Fulcrum Metals
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.08 times more return on investment than Fulcrum Metals. However, Citigroup is 1.08 times more volatile than Fulcrum Metals PLC. It trades about 0.45 of its potential returns per unit of risk. Fulcrum Metals PLC is currently generating about 0.26 per unit of risk. If you would invest 6,994 in Citigroup on November 2, 2024 and sell it today you would earn a total of 1,192 from holding Citigroup or generate 17.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
Citigroup vs. Fulcrum Metals PLC
Performance |
| Timeline |
| Citigroup |
| Fulcrum Metals PLC |
Citigroup and Fulcrum Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Fulcrum Metals
The main advantage of trading using opposite Citigroup and Fulcrum Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Fulcrum Metals 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 Fulcrum Metals will offset losses from the drop in Fulcrum Metals' long position.| Citigroup vs. Royal Bank of | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Canadian Imperial Bank |
| Fulcrum Metals vs. Givaudan SA | Fulcrum Metals vs. Atalaya Mining | Fulcrum Metals vs. Central Asia Metals | Fulcrum Metals vs. Metals Exploration Plc |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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