Correlation Between Citigroup and Gadwa For
Can any of the company-specific risk be diversified away by investing in both Citigroup and Gadwa For 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 Gadwa For into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Gadwa For Industrial, you can compare the effects of market volatilities on Citigroup and Gadwa For 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 Gadwa For. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Gadwa For.
Diversification Opportunities for Citigroup and Gadwa For
Very good diversification
The 3 months correlation between Citigroup and Gadwa is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Gadwa For Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gadwa For Industrial 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 Gadwa For. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gadwa For Industrial has no effect on the direction of Citigroup i.e., Citigroup and Gadwa For go up and down completely randomly.
Pair Corralation between Citigroup and Gadwa For
Taking into account the 90-day investment horizon Citigroup is expected to generate 4.26 times less return on investment than Gadwa For. But when comparing it to its historical volatility, Citigroup is 2.44 times less risky than Gadwa For. It trades about 0.07 of its potential returns per unit of risk. Gadwa For Industrial is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 103.00 in Gadwa For Industrial on September 3, 2024 and sell it today you would earn a total of 397.00 from holding Gadwa For Industrial or generate 385.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 77.98% |
| Values | Daily Returns |
Citigroup vs. Gadwa For Industrial
Performance |
| Timeline |
| Citigroup |
| Gadwa For Industrial |
Citigroup and Gadwa For Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Gadwa For
The main advantage of trading using opposite Citigroup and Gadwa For positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Gadwa For 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 Gadwa For will offset losses from the drop in Gadwa For's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Gadwa For vs. Paint Chemicals Industries | Gadwa For vs. Egyptians For Investment | Gadwa For vs. Misr Oils Soap | Gadwa For vs. Global Telecom Holding |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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