Correlation Between Citigroup and Hays Plc
Can any of the company-specific risk be diversified away by investing in both Citigroup and Hays Plc 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 Hays Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Hays plc, you can compare the effects of market volatilities on Citigroup and Hays Plc 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 Hays Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Hays Plc.
Diversification Opportunities for Citigroup and Hays Plc
Excellent diversification
The 3 months correlation between Citigroup and Hays is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Hays plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hays plc 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 Hays Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hays plc has no effect on the direction of Citigroup i.e., Citigroup and Hays Plc go up and down completely randomly.
Pair Corralation between Citigroup and Hays Plc
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.61 times more return on investment than Hays Plc. However, Citigroup is 1.64 times less risky than Hays Plc. It trades about 0.07 of its potential returns per unit of risk. Hays plc is currently generating about -0.01 per unit of risk. If you would invest 4,293 in Citigroup on September 3, 2024 and sell it today you would earn a total of 2,794 from holding Citigroup or generate 65.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.02% |
| Values | Daily Returns |
Citigroup vs. Hays plc
Performance |
| Timeline |
| Citigroup |
| Hays plc |
Citigroup and Hays Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Hays Plc
The main advantage of trading using opposite Citigroup and Hays Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Hays Plc 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 Hays Plc will offset losses from the drop in Hays Plc's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Hays Plc vs. Entravision Communications | Hays Plc vs. United Breweries Co | Hays Plc vs. Monster Beverage Corp | Hays Plc vs. National Beverage Corp |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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