Correlation Between Citigroup and HAVILAH RESOURCES
Can any of the company-specific risk be diversified away by investing in both Citigroup and HAVILAH RESOURCES 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 HAVILAH RESOURCES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and HAVILAH RESOURCES, you can compare the effects of market volatilities on Citigroup and HAVILAH RESOURCES 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 HAVILAH RESOURCES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and HAVILAH RESOURCES.
Diversification Opportunities for Citigroup and HAVILAH RESOURCES
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Citigroup and HAVILAH is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and HAVILAH RESOURCES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HAVILAH RESOURCES 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 HAVILAH RESOURCES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HAVILAH RESOURCES has no effect on the direction of Citigroup i.e., Citigroup and HAVILAH RESOURCES go up and down completely randomly.
Pair Corralation between Citigroup and HAVILAH RESOURCES
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.08 times more return on investment than HAVILAH RESOURCES. However, Citigroup is 1.08 times more volatile than HAVILAH RESOURCES. It trades about 0.27 of its potential returns per unit of risk. HAVILAH RESOURCES is currently generating about 0.21 per unit of risk. If you would invest 6,315 in Citigroup on September 2, 2024 and sell it today you would earn a total of 772.00 from holding Citigroup or generate 12.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Citigroup vs. HAVILAH RESOURCES
Performance |
| Timeline |
| Citigroup |
| HAVILAH RESOURCES |
Citigroup and HAVILAH RESOURCES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and HAVILAH RESOURCES
The main advantage of trading using opposite Citigroup and HAVILAH RESOURCES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, HAVILAH RESOURCES 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 HAVILAH RESOURCES will offset losses from the drop in HAVILAH RESOURCES's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
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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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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