Correlation Between Citigroup and Golden Star
Can any of the company-specific risk be diversified away by investing in both Citigroup and Golden Star 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 Golden Star into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Golden Star Acquisition, you can compare the effects of market volatilities on Citigroup and Golden Star 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 Golden Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Golden Star.
Diversification Opportunities for Citigroup and Golden Star
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and Golden is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Golden Star Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Star Acquisition 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 Golden Star. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Star Acquisition has no effect on the direction of Citigroup i.e., Citigroup and Golden Star go up and down completely randomly.
Pair Corralation between Citigroup and Golden Star
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.42 times more return on investment than Golden Star. However, Citigroup is 2.37 times less risky than Golden Star. It trades about 0.27 of its potential returns per unit of risk. Golden Star Acquisition is currently generating about -0.27 per unit of risk. If you would invest 6,315 in Citigroup on September 2, 2024 and sell it today you would earn a total of 772.00 from holding Citigroup or generate 12.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 38.1% |
| Values | Daily Returns |
Citigroup vs. Golden Star Acquisition
Performance |
| Timeline |
| Citigroup |
| Golden Star Acquisition |
Citigroup and Golden Star Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Golden Star
The main advantage of trading using opposite Citigroup and Golden Star positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Golden Star 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 Golden Star will offset losses from the drop in Golden Star's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Golden Star vs. Visa Class A | Golden Star vs. Diamond Hill Investment | Golden Star vs. Distoken Acquisition | Golden Star vs. AllianceBernstein Holding LP |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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