Correlation Between Citigroup and Green Resources
Can any of the company-specific risk be diversified away by investing in both Citigroup and Green Resources 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 Green Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Green Resources Public, you can compare the effects of market volatilities on Citigroup and Green Resources 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 Green Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Green Resources.
Diversification Opportunities for Citigroup and Green Resources
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and Green is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Green Resources Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Green Resources Public 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 Green Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Green Resources Public has no effect on the direction of Citigroup i.e., Citigroup and Green Resources go up and down completely randomly.
Pair Corralation between Citigroup and Green Resources
Taking into account the 90-day investment horizon Citigroup is expected to generate 16.09 times less return on investment than Green Resources. But when comparing it to its historical volatility, Citigroup is 27.76 times less risky than Green Resources. It trades about 0.07 of its potential returns per unit of risk. Green Resources Public is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 119.00 in Green Resources Public on October 21, 2024 and sell it today you would lose (20.00) from holding Green Resources Public or give up 16.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 96.98% |
| Values | Daily Returns |
Citigroup vs. Green Resources Public
Performance |
| Timeline |
| Citigroup |
| Green Resources Public |
Citigroup and Green Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Green Resources
The main advantage of trading using opposite Citigroup and Green Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Green Resources 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 Green Resources will offset losses from the drop in Green Resources' long position.| Citigroup vs. Bank of Montreal | Citigroup vs. Canadian Imperial Bank | Citigroup vs. Bank of Nova | Citigroup vs. JPMorgan Chase Co |
| Green Resources vs. AP Public | Green Resources vs. Siri Prime Office | Green Resources vs. Quality Houses Public | Green Resources vs. LPN Development Public |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |