Correlation Between Citigroup and Harvia Oyj
Can any of the company-specific risk be diversified away by investing in both Citigroup and Harvia Oyj 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 Harvia Oyj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Harvia Oyj, you can compare the effects of market volatilities on Citigroup and Harvia Oyj 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 Harvia Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Harvia Oyj.
Diversification Opportunities for Citigroup and Harvia Oyj
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Citigroup and Harvia is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Harvia Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harvia Oyj 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 Harvia Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harvia Oyj has no effect on the direction of Citigroup i.e., Citigroup and Harvia Oyj go up and down completely randomly.
Pair Corralation between Citigroup and Harvia Oyj
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.69 times less return on investment than Harvia Oyj. But when comparing it to its historical volatility, Citigroup is 1.46 times less risky than Harvia Oyj. It trades about 0.07 of its potential returns per unit of risk. Harvia Oyj is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,813 in Harvia Oyj on August 27, 2024 and sell it today you would earn a total of 2,477 from holding Harvia Oyj or generate 136.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Citigroup vs. Harvia Oyj
Performance |
| Timeline |
| Citigroup |
| Harvia Oyj |
Citigroup and Harvia Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Harvia Oyj
The main advantage of trading using opposite Citigroup and Harvia Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Harvia Oyj 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 Harvia Oyj will offset losses from the drop in Harvia Oyj's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| Harvia Oyj vs. Qt Group Oyj | Harvia Oyj vs. Kamux Suomi Oy | Harvia Oyj vs. Sampo Oyj A | Harvia Oyj vs. Tokmanni Group Oyj |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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