Correlation Between Citigroup and GECI International
Can any of the company-specific risk be diversified away by investing in both Citigroup and GECI International 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 GECI International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and GECI International SA, you can compare the effects of market volatilities on Citigroup and GECI International 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 GECI International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and GECI International.
Diversification Opportunities for Citigroup and GECI International
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and GECI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and GECI International SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GECI International 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 GECI International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GECI International has no effect on the direction of Citigroup i.e., Citigroup and GECI International go up and down completely randomly.
Pair Corralation between Citigroup and GECI International
If you would invest 6,900 in Citigroup on September 19, 2024 and sell it today you would earn a total of 212.00 from holding Citigroup or generate 3.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Citigroup vs. GECI International SA
Performance |
| Timeline |
| Citigroup |
| GECI International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and GECI International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and GECI International
The main advantage of trading using opposite Citigroup and GECI International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, GECI International 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 GECI International will offset losses from the drop in GECI International's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| GECI International vs. Covivio Hotels | GECI International vs. Avenir Telecom SA | GECI International vs. Invibes Advertising NV | GECI International vs. Pullup Entertainment Socit |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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