Correlation Between Citigroup and Global Partner
Can any of the company-specific risk be diversified away by investing in both Citigroup and Global Partner 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 Global Partner into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Global Partner Acquisition, you can compare the effects of market volatilities on Citigroup and Global Partner 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 Global Partner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Global Partner.
Diversification Opportunities for Citigroup and Global Partner
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and Global is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Global Partner Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Partner Acqui 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 Global Partner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Partner Acqui has no effect on the direction of Citigroup i.e., Citigroup and Global Partner go up and down completely randomly.
Pair Corralation between Citigroup and Global Partner
If you would invest 6,205 in Citigroup on August 30, 2024 and sell it today you would earn a total of 811.00 from holding Citigroup or generate 13.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Citigroup vs. Global Partner Acquisition
Performance |
| Timeline |
| Citigroup |
| Global Partner Acqui |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Global Partner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Global Partner
The main advantage of trading using opposite Citigroup and Global Partner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Global Partner 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 Global Partner will offset losses from the drop in Global Partner's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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