Correlation Between Citigroup and GasLog Partners
Can any of the company-specific risk be diversified away by investing in both Citigroup and GasLog Partners 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 GasLog Partners into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and GasLog Partners LP, you can compare the effects of market volatilities on Citigroup and GasLog Partners 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 GasLog Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and GasLog Partners.
Diversification Opportunities for Citigroup and GasLog Partners
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Citigroup and GasLog is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and GasLog Partners LP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GasLog Partners LP 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 GasLog Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GasLog Partners LP has no effect on the direction of Citigroup i.e., Citigroup and GasLog Partners go up and down completely randomly.
Pair Corralation between Citigroup and GasLog Partners
Taking into account the 90-day investment horizon Citigroup is expected to generate 4.43 times more return on investment than GasLog Partners. However, Citigroup is 4.43 times more volatile than GasLog Partners LP. It trades about 0.21 of its potential returns per unit of risk. GasLog Partners LP is currently generating about 0.09 per unit of risk. If you would invest 6,412 in Citigroup on August 30, 2024 and sell it today you would earn a total of 604.00 from holding Citigroup or generate 9.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. GasLog Partners LP
Performance |
| Timeline |
| Citigroup |
| GasLog Partners LP |
Citigroup and GasLog Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and GasLog Partners
The main advantage of trading using opposite Citigroup and GasLog Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, GasLog Partners 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 GasLog Partners will offset losses from the drop in GasLog Partners' long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| GasLog Partners vs. GasLog Partners LP | GasLog Partners vs. GasLog Partners LP | GasLog Partners vs. Dynagas LNG Partners | GasLog Partners vs. Dynagas LNG Partners |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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