Correlation Between Citigroup and GLATFELTER
Can any of the company-specific risk be diversified away by investing in both Citigroup and GLATFELTER 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 GLATFELTER into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and GLATFELTER, you can compare the effects of market volatilities on Citigroup and GLATFELTER 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 GLATFELTER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and GLATFELTER.
Diversification Opportunities for Citigroup and GLATFELTER
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and GLATFELTER is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and GLATFELTER in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GLATFELTER 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 GLATFELTER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GLATFELTER has no effect on the direction of Citigroup i.e., Citigroup and GLATFELTER go up and down completely randomly.
Pair Corralation between Citigroup and GLATFELTER
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.63 times less return on investment than GLATFELTER. But when comparing it to its historical volatility, Citigroup is 3.67 times less risky than GLATFELTER. It trades about 0.19 of its potential returns per unit of risk. GLATFELTER is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,734 in GLATFELTER on September 17, 2024 and sell it today you would earn a total of 124.00 from holding GLATFELTER or generate 7.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. GLATFELTER
Performance |
| Timeline |
| Citigroup |
| GLATFELTER |
Citigroup and GLATFELTER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and GLATFELTER
The main advantage of trading using opposite Citigroup and GLATFELTER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, GLATFELTER 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 GLATFELTER will offset losses from the drop in GLATFELTER's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| GLATFELTER vs. FORMPIPE SOFTWARE AB | GLATFELTER vs. Major Drilling Group | GLATFELTER vs. PRECISION DRILLING P | GLATFELTER vs. VITEC SOFTWARE GROUP |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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