Correlation Between Citigroup and VERU INC
Can any of the company-specific risk be diversified away by investing in both Citigroup and VERU INC 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 VERU INC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and VERU INC DL 01, you can compare the effects of market volatilities on Citigroup and VERU INC 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 VERU INC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and VERU INC.
Diversification Opportunities for Citigroup and VERU INC
Excellent diversification
The 3 months correlation between Citigroup and VERU is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and VERU INC DL 01 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VERU INC DL 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 VERU INC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VERU INC DL has no effect on the direction of Citigroup i.e., Citigroup and VERU INC go up and down completely randomly.
Pair Corralation between Citigroup and VERU INC
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.25 times more return on investment than VERU INC. However, Citigroup is 3.96 times less risky than VERU INC. It trades about 0.06 of its potential returns per unit of risk. VERU INC DL 01 is currently generating about -0.03 per unit of risk. If you would invest 4,790 in Citigroup on October 13, 2024 and sell it today you would earn a total of 2,350 from holding Citigroup or generate 49.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.8% |
| Values | Daily Returns |
Citigroup vs. VERU INC DL 01
Performance |
| Timeline |
| Citigroup |
| VERU INC DL |
Citigroup and VERU INC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and VERU INC
The main advantage of trading using opposite Citigroup and VERU INC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, VERU INC 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 VERU INC will offset losses from the drop in VERU INC's long position.| Citigroup vs. Nu Holdings | Citigroup vs. Canadian Imperial Bank | Citigroup vs. Bank of Montreal | Citigroup vs. Bank of Nova |
| VERU INC vs. Gruppo Mutuionline SpA | VERU INC vs. Lamar Advertising | VERU INC vs. SERI INDUSTRIAL EO | VERU INC vs. Salesforce |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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