Correlation Between Citigroup and GGX Gold
Can any of the company-specific risk be diversified away by investing in both Citigroup and GGX Gold 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 GGX Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and GGX Gold Corp, you can compare the effects of market volatilities on Citigroup and GGX Gold 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 GGX Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and GGX Gold.
Diversification Opportunities for Citigroup and GGX Gold
Very good diversification
The 3 months correlation between Citigroup and GGX is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and GGX Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GGX Gold Corp 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 GGX Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GGX Gold Corp has no effect on the direction of Citigroup i.e., Citigroup and GGX Gold go up and down completely randomly.
Pair Corralation between Citigroup and GGX Gold
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.16 times less return on investment than GGX Gold. But when comparing it to its historical volatility, Citigroup is 4.6 times less risky than GGX Gold. It trades about 0.16 of its potential returns per unit of risk. GGX Gold Corp is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1.85 in GGX Gold Corp on August 25, 2024 and sell it today you would lose (0.03) from holding GGX Gold Corp or give up 1.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. GGX Gold Corp
Performance |
| Timeline |
| Citigroup |
| GGX Gold Corp |
Citigroup and GGX Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and GGX Gold
The main advantage of trading using opposite Citigroup and GGX Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, GGX Gold 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 GGX Gold will offset losses from the drop in GGX Gold's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| GGX Gold vs. Aurion Resources | GGX Gold vs. Liberty Gold Corp | GGX Gold vs. Rio2 Limited | GGX Gold vs. Orezone Gold 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |