Correlation Between Citigroup and Gan Shmuel
Can any of the company-specific risk be diversified away by investing in both Citigroup and Gan Shmuel 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 Gan Shmuel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Gan Shmuel, you can compare the effects of market volatilities on Citigroup and Gan Shmuel 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 Gan Shmuel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Gan Shmuel.
Diversification Opportunities for Citigroup and Gan Shmuel
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Citigroup and Gan is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Gan Shmuel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gan Shmuel 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 Gan Shmuel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gan Shmuel has no effect on the direction of Citigroup i.e., Citigroup and Gan Shmuel go up and down completely randomly.
Pair Corralation between Citigroup and Gan Shmuel
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.21 times more return on investment than Gan Shmuel. However, Citigroup is 1.21 times more volatile than Gan Shmuel. It trades about 0.32 of its potential returns per unit of risk. Gan Shmuel is currently generating about 0.12 per unit of risk. If you would invest 6,235 in Citigroup on September 3, 2024 and sell it today you would earn a total of 852.00 from holding Citigroup or generate 13.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 85.0% |
| Values | Daily Returns |
Citigroup vs. Gan Shmuel
Performance |
| Timeline |
| Citigroup |
| Gan Shmuel |
Citigroup and Gan Shmuel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Gan Shmuel
The main advantage of trading using opposite Citigroup and Gan Shmuel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Gan Shmuel 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 Gan Shmuel will offset losses from the drop in Gan Shmuel's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Gan Shmuel vs. Shufersal | Gan Shmuel vs. Rami Levi | Gan Shmuel vs. Tiv Taam | Gan Shmuel vs. M Yochananof and |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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