Correlation Between Citigroup and Eagle Mid
Can any of the company-specific risk be diversified away by investing in both Citigroup and Eagle Mid 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 Eagle Mid into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Eagle Mid Cap, you can compare the effects of market volatilities on Citigroup and Eagle Mid 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 Eagle Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Eagle Mid.
Diversification Opportunities for Citigroup and Eagle Mid
Almost no diversification
The 3 months correlation between Citigroup and Eagle is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Eagle Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Mid Cap 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 Eagle Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Mid Cap has no effect on the direction of Citigroup i.e., Citigroup and Eagle Mid go up and down completely randomly.
Pair Corralation between Citigroup and Eagle Mid
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.09 times less return on investment than Eagle Mid. In addition to that, Citigroup is 2.04 times more volatile than Eagle Mid Cap. It trades about 0.13 of its total potential returns per unit of risk. Eagle Mid Cap is currently generating about 0.29 per unit of volatility. If you would invest 5,130 in Eagle Mid Cap on September 2, 2024 and sell it today you would earn a total of 981.00 from holding Eagle Mid Cap or generate 19.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Eagle Mid Cap
Performance |
| Timeline |
| Citigroup |
| Eagle Mid Cap |
Citigroup and Eagle Mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Eagle Mid
The main advantage of trading using opposite Citigroup and Eagle Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Eagle Mid 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 Eagle Mid will offset losses from the drop in Eagle Mid's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
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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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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