Correlation Between Citigroup and Freeze Tag
Can any of the company-specific risk be diversified away by investing in both Citigroup and Freeze Tag 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 Freeze Tag into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Freeze Tag, you can compare the effects of market volatilities on Citigroup and Freeze Tag 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 Freeze Tag. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Freeze Tag.
Diversification Opportunities for Citigroup and Freeze Tag
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Citigroup and Freeze is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Freeze Tag in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Freeze Tag 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 Freeze Tag. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Freeze Tag has no effect on the direction of Citigroup i.e., Citigroup and Freeze Tag go up and down completely randomly.
Pair Corralation between Citigroup and Freeze Tag
Taking into account the 90-day investment horizon Citigroup is expected to generate 9.06 times less return on investment than Freeze Tag. But when comparing it to its historical volatility, Citigroup is 12.17 times less risky than Freeze Tag. It trades about 0.1 of its potential returns per unit of risk. Freeze Tag is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1.60 in Freeze Tag on September 19, 2024 and sell it today you would lose (0.81) from holding Freeze Tag or give up 50.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Freeze Tag
Performance |
| Timeline |
| Citigroup |
| Freeze Tag |
Citigroup and Freeze Tag Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Freeze Tag
The main advantage of trading using opposite Citigroup and Freeze Tag positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Freeze Tag 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 Freeze Tag will offset losses from the drop in Freeze Tag's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Freeze Tag vs. NEXON Co | Freeze Tag vs. Playstudios | Freeze Tag vs. Doubledown Interactive Co | Freeze Tag vs. Bragg Gaming Group |
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 Positions Ratings module to 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.
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