Correlation Between Citigroup and Great Southern
Can any of the company-specific risk be diversified away by investing in both Citigroup and Great Southern 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 Great Southern into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Great Southern Bancorp, you can compare the effects of market volatilities on Citigroup and Great Southern 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 Great Southern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Great Southern.
Diversification Opportunities for Citigroup and Great Southern
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and Great is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Great Southern Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great Southern Bancorp 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 Great Southern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great Southern Bancorp has no effect on the direction of Citigroup i.e., Citigroup and Great Southern go up and down completely randomly.
Pair Corralation between Citigroup and Great Southern
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.03 times less return on investment than Great Southern. But when comparing it to its historical volatility, Citigroup is 1.72 times less risky than Great Southern. It trades about 0.2 of its potential returns per unit of risk. Great Southern Bancorp is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 5,812 in Great Southern Bancorp on August 30, 2024 and sell it today you would earn a total of 511.00 from holding Great Southern Bancorp or generate 8.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Great Southern Bancorp
Performance |
| Timeline |
| Citigroup |
| Great Southern Bancorp |
Citigroup and Great Southern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Great Southern
The main advantage of trading using opposite Citigroup and Great Southern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Great Southern 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 Great Southern will offset losses from the drop in Great Southern's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Great Southern vs. First Northwest Bancorp | Great Southern vs. Community West Bancshares | Great Southern vs. First Financial Northwest | Great Southern vs. First Capital |
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.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |