Correlation Between Citigroup and HITACHI CONSTRMACHADR/2
Can any of the company-specific risk be diversified away by investing in both Citigroup and HITACHI CONSTRMACHADR/2 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 HITACHI CONSTRMACHADR/2 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and HITACHI STRMACHADR2, you can compare the effects of market volatilities on Citigroup and HITACHI CONSTRMACHADR/2 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 HITACHI CONSTRMACHADR/2. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and HITACHI CONSTRMACHADR/2.
Diversification Opportunities for Citigroup and HITACHI CONSTRMACHADR/2
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and HITACHI is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and HITACHI STRMACHADR2 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HITACHI CONSTRMACHADR/2 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 HITACHI CONSTRMACHADR/2. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HITACHI CONSTRMACHADR/2 has no effect on the direction of Citigroup i.e., Citigroup and HITACHI CONSTRMACHADR/2 go up and down completely randomly.
Pair Corralation between Citigroup and HITACHI CONSTRMACHADR/2
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.74 times more return on investment than HITACHI CONSTRMACHADR/2. However, Citigroup is 1.35 times less risky than HITACHI CONSTRMACHADR/2. It trades about 0.11 of its potential returns per unit of risk. HITACHI STRMACHADR2 is currently generating about 0.0 per unit of risk. If you would invest 4,676 in Citigroup on September 2, 2024 and sell it today you would earn a total of 2,411 from holding Citigroup or generate 51.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
Citigroup vs. HITACHI STRMACHADR2
Performance |
| Timeline |
| Citigroup |
| HITACHI CONSTRMACHADR/2 |
Citigroup and HITACHI CONSTRMACHADR/2 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and HITACHI CONSTRMACHADR/2
The main advantage of trading using opposite Citigroup and HITACHI CONSTRMACHADR/2 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, HITACHI CONSTRMACHADR/2 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 HITACHI CONSTRMACHADR/2 will offset losses from the drop in HITACHI CONSTRMACHADR/2's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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