Correlation Between Citigroup and Gogoro Equity
Can any of the company-specific risk be diversified away by investing in both Citigroup and Gogoro Equity 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 Gogoro Equity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Gogoro Equity Warrant, you can compare the effects of market volatilities on Citigroup and Gogoro Equity 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 Gogoro Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Gogoro Equity.
Diversification Opportunities for Citigroup and Gogoro Equity
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Gogoro is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Gogoro Equity Warrant in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gogoro Equity Warrant 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 Gogoro Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gogoro Equity Warrant has no effect on the direction of Citigroup i.e., Citigroup and Gogoro Equity go up and down completely randomly.
Pair Corralation between Citigroup and Gogoro Equity
Taking into account the 90-day investment horizon Citigroup is expected to generate 16.32 times less return on investment than Gogoro Equity. But when comparing it to its historical volatility, Citigroup is 28.87 times less risky than Gogoro Equity. It trades about 0.07 of its potential returns per unit of risk. Gogoro Equity Warrant is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 49.00 in Gogoro Equity Warrant on September 2, 2024 and sell it today you would lose (46.97) from holding Gogoro Equity Warrant or give up 95.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.38% |
| Values | Daily Returns |
Citigroup vs. Gogoro Equity Warrant
Performance |
| Timeline |
| Citigroup |
| Gogoro Equity Warrant |
Citigroup and Gogoro Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Gogoro Equity
The main advantage of trading using opposite Citigroup and Gogoro Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Gogoro Equity 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 Gogoro Equity will offset losses from the drop in Gogoro Equity's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Gogoro Equity vs. Stryve Foods | Gogoro Equity vs. TC BioPharm Holdings | Gogoro Equity vs. Voxtur Analytics Corp |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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