Correlation Between Citigroup and GameOn Entertainment
Can any of the company-specific risk be diversified away by investing in both Citigroup and GameOn Entertainment 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 GameOn Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and GameOn Entertainment Technologies, you can compare the effects of market volatilities on Citigroup and GameOn Entertainment 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 GameOn Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and GameOn Entertainment.
Diversification Opportunities for Citigroup and GameOn Entertainment
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and GameOn is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and GameOn Entertainment Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GameOn Entertainment 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 GameOn Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GameOn Entertainment has no effect on the direction of Citigroup i.e., Citigroup and GameOn Entertainment go up and down completely randomly.
Pair Corralation between Citigroup and GameOn Entertainment
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.12 times more return on investment than GameOn Entertainment. However, Citigroup is 8.04 times less risky than GameOn Entertainment. It trades about 0.06 of its potential returns per unit of risk. GameOn Entertainment Technologies is currently generating about -0.04 per unit of risk. If you would invest 6,131 in Citigroup on August 24, 2024 and sell it today you would earn a total of 764.00 from holding Citigroup or generate 12.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. GameOn Entertainment Technolog
Performance |
| Timeline |
| Citigroup |
| GameOn Entertainment |
Citigroup and GameOn Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and GameOn Entertainment
The main advantage of trading using opposite Citigroup and GameOn Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, GameOn Entertainment 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 GameOn Entertainment will offset losses from the drop in GameOn Entertainment's long position.| Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Royal Bank of | Citigroup vs. JPMorgan Chase Co |
| GameOn Entertainment vs. Playtika Holding Corp | GameOn Entertainment vs. Square Enix Holdings | GameOn Entertainment vs. Capcom Co | GameOn Entertainment vs. Nexters Warrant |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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