Correlation Between Citigroup and FitLife Brands,
Can any of the company-specific risk be diversified away by investing in both Citigroup and FitLife Brands, 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 FitLife Brands, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and FitLife Brands, Common, you can compare the effects of market volatilities on Citigroup and FitLife Brands, 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 FitLife Brands,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and FitLife Brands,.
Diversification Opportunities for Citigroup and FitLife Brands,
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and FitLife is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and FitLife Brands, Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FitLife Brands, Common 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 FitLife Brands,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FitLife Brands, Common has no effect on the direction of Citigroup i.e., Citigroup and FitLife Brands, go up and down completely randomly.
Pair Corralation between Citigroup and FitLife Brands,
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.82 times more return on investment than FitLife Brands,. However, Citigroup is 1.22 times less risky than FitLife Brands,. It trades about 0.21 of its potential returns per unit of risk. FitLife Brands, Common is currently generating about -0.02 per unit of risk. If you would invest 6,255 in Citigroup on August 24, 2024 and sell it today you would earn a total of 640.00 from holding Citigroup or generate 10.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. FitLife Brands, Common
Performance |
| Timeline |
| Citigroup |
| FitLife Brands, Common |
Citigroup and FitLife Brands, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and FitLife Brands,
The main advantage of trading using opposite Citigroup and FitLife Brands, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, FitLife Brands, 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 FitLife Brands, will offset losses from the drop in FitLife Brands,'s long position.| Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Royal Bank of | Citigroup vs. JPMorgan Chase Co |
| FitLife Brands, vs. Seneca Foods Corp | FitLife Brands, vs. Central Garden Pet | FitLife Brands, vs. Central Garden Pet | FitLife Brands, vs. Associated British Foods |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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