Correlation Between Citigroup and Going Public
Can any of the company-specific risk be diversified away by investing in both Citigroup and Going Public 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 Going Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Going Public Media, you can compare the effects of market volatilities on Citigroup and Going Public 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 Going Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Going Public.
Diversification Opportunities for Citigroup and Going Public
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Citigroup and Going is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Going Public Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Going Public Media 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 Going Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Going Public Media has no effect on the direction of Citigroup i.e., Citigroup and Going Public go up and down completely randomly.
Pair Corralation between Citigroup and Going Public
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.66 times more return on investment than Going Public. However, Citigroup is 1.52 times less risky than Going Public. It trades about 0.06 of its potential returns per unit of risk. Going Public Media is currently generating about -0.03 per unit of risk. If you would invest 4,636 in Citigroup on October 7, 2024 and sell it today you would earn a total of 2,464 from holding Citigroup or generate 53.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.0% |
| Values | Daily Returns |
Citigroup vs. Going Public Media
Performance |
| Timeline |
| Citigroup |
| Going Public Media |
Citigroup and Going Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Going Public
The main advantage of trading using opposite Citigroup and Going Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Going Public 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 Going Public will offset losses from the drop in Going Public's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Going Public vs. Pearson plc | Going Public vs. Superior Plus Corp | Going Public vs. NMI Holdings | Going Public vs. SIVERS SEMICONDUCTORS AB |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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