Correlation Between Citigroup and Fuji Media
Can any of the company-specific risk be diversified away by investing in both Citigroup and Fuji Media 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 Fuji Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Fuji Media Holdings, you can compare the effects of market volatilities on Citigroup and Fuji Media 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 Fuji Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Fuji Media.
Diversification Opportunities for Citigroup and Fuji Media
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Citigroup and Fuji is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Fuji Media Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fuji Media Holdings 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 Fuji Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fuji Media Holdings has no effect on the direction of Citigroup i.e., Citigroup and Fuji Media go up and down completely randomly.
Pair Corralation between Citigroup and Fuji Media
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.87 times more return on investment than Fuji Media. However, Citigroup is 1.15 times less risky than Fuji Media. It trades about 0.06 of its potential returns per unit of risk. Fuji Media Holdings is currently generating about 0.04 per unit of risk. If you would invest 4,790 in Citigroup on October 12, 2024 and sell it today you would earn a total of 2,536 from holding Citigroup or generate 52.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.8% |
| Values | Daily Returns |
Citigroup vs. Fuji Media Holdings
Performance |
| Timeline |
| Citigroup |
| Fuji Media Holdings |
Citigroup and Fuji Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Fuji Media
The main advantage of trading using opposite Citigroup and Fuji Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Fuji Media 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 Fuji Media will offset losses from the drop in Fuji Media's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Fuji Media vs. American Eagle Outfitters | Fuji Media vs. Liberty Broadband | Fuji Media vs. Broadcom | Fuji Media vs. COMBA TELECOM SYST |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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