Correlation Between Citigroup and Garb Oil
Can any of the company-specific risk be diversified away by investing in both Citigroup and Garb Oil 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 Garb Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Garb Oil Pwr, you can compare the effects of market volatilities on Citigroup and Garb Oil 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 Garb Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Garb Oil.
Diversification Opportunities for Citigroup and Garb Oil
Pay attention - limited upside
The 3 months correlation between Citigroup and Garb is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Garb Oil Pwr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Garb Oil Pwr 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 Garb Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Garb Oil Pwr has no effect on the direction of Citigroup i.e., Citigroup and Garb Oil go up and down completely randomly.
Pair Corralation between Citigroup and Garb Oil
If you would invest 6,360 in Citigroup on August 28, 2024 and sell it today you would earn a total of 715.00 from holding Citigroup or generate 11.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Citigroup vs. Garb Oil Pwr
Performance |
| Timeline |
| Citigroup |
| Garb Oil Pwr |
Citigroup and Garb Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Garb Oil
The main advantage of trading using opposite Citigroup and Garb Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Garb Oil 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 Garb Oil will offset losses from the drop in Garb Oil's long position.The idea behind Citigroup and Garb Oil Pwr pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Garb Oil vs. Republic Services | Garb Oil vs. Waste Connections | Garb Oil vs. Clean Harbors | Garb Oil vs. Gfl Environmental Holdings |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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