Correlation Between Citigroup and Grounded People
Can any of the company-specific risk be diversified away by investing in both Citigroup and Grounded People 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 Grounded People into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Grounded People Apparel, you can compare the effects of market volatilities on Citigroup and Grounded People 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 Grounded People. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Grounded People.
Diversification Opportunities for Citigroup and Grounded People
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Grounded is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Grounded People Apparel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grounded People Apparel 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 Grounded People. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grounded People Apparel has no effect on the direction of Citigroup i.e., Citigroup and Grounded People go up and down completely randomly.
Pair Corralation between Citigroup and Grounded People
If you would invest 7,196 in Citigroup on October 12, 2024 and sell it today you would earn a total of 130.00 from holding Citigroup or generate 1.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Grounded People Apparel
Performance |
| Timeline |
| Citigroup |
| Grounded People Apparel |
Citigroup and Grounded People Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Grounded People
The main advantage of trading using opposite Citigroup and Grounded People positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Grounded People 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 Grounded People will offset losses from the drop in Grounded People's long position.| Citigroup vs. Royal Bank of | Citigroup vs. JPMorgan Chase Co | Citigroup vs. Nu Holdings | Citigroup vs. Canadian Imperial Bank |
| Grounded People vs. Boyd Gaming | Grounded People vs. Regeneron Pharmaceuticals | Grounded People vs. Dennys Corp | Grounded People vs. Lipocine |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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