Correlation Between Citigroup and HUDSON GLOBAL
Can any of the company-specific risk be diversified away by investing in both Citigroup and HUDSON GLOBAL 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 HUDSON GLOBAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and HUDSON GLOBAL INCDL 001, you can compare the effects of market volatilities on Citigroup and HUDSON GLOBAL 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 HUDSON GLOBAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and HUDSON GLOBAL.
Diversification Opportunities for Citigroup and HUDSON GLOBAL
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Citigroup and HUDSON is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and HUDSON GLOBAL INCDL 001 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUDSON GLOBAL INCDL 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 HUDSON GLOBAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HUDSON GLOBAL INCDL has no effect on the direction of Citigroup i.e., Citigroup and HUDSON GLOBAL go up and down completely randomly.
Pair Corralation between Citigroup and HUDSON GLOBAL
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.31 times more return on investment than HUDSON GLOBAL. However, Citigroup is 3.24 times less risky than HUDSON GLOBAL. It trades about 0.07 of its potential returns per unit of risk. HUDSON GLOBAL INCDL 001 is currently generating about 0.0 per unit of risk. If you would invest 4,206 in Citigroup on August 26, 2024 and sell it today you would earn a total of 2,778 from holding Citigroup or generate 66.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.22% |
| Values | Daily Returns |
Citigroup vs. HUDSON GLOBAL INCDL 001
Performance |
| Timeline |
| Citigroup |
| HUDSON GLOBAL INCDL |
Citigroup and HUDSON GLOBAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and HUDSON GLOBAL
The main advantage of trading using opposite Citigroup and HUDSON GLOBAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, HUDSON GLOBAL 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 HUDSON GLOBAL will offset losses from the drop in HUDSON GLOBAL's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| HUDSON GLOBAL vs. Cleanaway Waste Management | HUDSON GLOBAL vs. Tianjin Capital Environmental | HUDSON GLOBAL vs. Brockhaus Capital Management | HUDSON GLOBAL vs. Jupiter Fund Management |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |