Correlation Between Citigroup and Aksara Global
Can any of the company-specific risk be diversified away by investing in both Citigroup and Aksara Global 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 Aksara Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Aksara Global Development, you can compare the effects of market volatilities on Citigroup and Aksara Global 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 Aksara Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Aksara Global.
Diversification Opportunities for Citigroup and Aksara Global
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Aksara is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Aksara Global Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aksara Global Development 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 Aksara Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aksara Global Development has no effect on the direction of Citigroup i.e., Citigroup and Aksara Global go up and down completely randomly.
Pair Corralation between Citigroup and Aksara Global
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.21 times more return on investment than Aksara Global. However, Citigroup is 1.21 times more volatile than Aksara Global Development. It trades about 0.06 of its potential returns per unit of risk. Aksara Global Development is currently generating about -0.17 per unit of risk. If you would invest 4,733 in Citigroup on August 27, 2024 and sell it today you would earn a total of 2,251 from holding Citigroup or generate 47.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 94.51% |
| Values | Daily Returns |
Citigroup vs. Aksara Global Development
Performance |
| Timeline |
| Citigroup |
| Aksara Global Development |
Citigroup and Aksara Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Aksara Global
The main advantage of trading using opposite Citigroup and Aksara Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Aksara Global 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 Aksara Global will offset losses from the drop in Aksara Global's long position.| Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal | Citigroup vs. Bank of Nova |
| Aksara Global vs. Greenwood Sejahtera Tbk | Aksara Global vs. Perdana Gapura Prima | Aksara Global vs. Bekasi Asri Pemula | Aksara Global vs. Megapolitan Developments Tbk |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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