Correlation Between Citigroup and GIVOT OLAM
Can any of the company-specific risk be diversified away by investing in both Citigroup and GIVOT OLAM 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 GIVOT OLAM into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and GIVOT OLAM OIL, you can compare the effects of market volatilities on Citigroup and GIVOT OLAM 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 GIVOT OLAM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and GIVOT OLAM.
Diversification Opportunities for Citigroup and GIVOT OLAM
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and GIVOT is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and GIVOT OLAM OIL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GIVOT OLAM OIL 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 GIVOT OLAM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GIVOT OLAM OIL has no effect on the direction of Citigroup i.e., Citigroup and GIVOT OLAM go up and down completely randomly.
Pair Corralation between Citigroup and GIVOT OLAM
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.6 times more return on investment than GIVOT OLAM. However, Citigroup is 1.68 times less risky than GIVOT OLAM. It trades about 0.1 of its potential returns per unit of risk. GIVOT OLAM OIL is currently generating about -0.07 per unit of risk. If you would invest 4,959 in Citigroup on August 25, 2024 and sell it today you would earn a total of 2,025 from holding Citigroup or generate 40.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 75.55% |
| Values | Daily Returns |
Citigroup vs. GIVOT OLAM OIL
Performance |
| Timeline |
| Citigroup |
| GIVOT OLAM OIL |
Citigroup and GIVOT OLAM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and GIVOT OLAM
The main advantage of trading using opposite Citigroup and GIVOT OLAM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, GIVOT OLAM 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 GIVOT OLAM will offset losses from the drop in GIVOT OLAM's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| GIVOT OLAM vs. Arad Investment Industrial | GIVOT OLAM vs. Batm Advanced Communications | GIVOT OLAM vs. Adgar Investments and | GIVOT OLAM vs. Oron Group Investments |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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