Correlation Between Citigroup and Hypertension Diagnostics
Can any of the company-specific risk be diversified away by investing in both Citigroup and Hypertension Diagnostics 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 Hypertension Diagnostics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Hypertension Diagnostics, you can compare the effects of market volatilities on Citigroup and Hypertension Diagnostics 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 Hypertension Diagnostics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Hypertension Diagnostics.
Diversification Opportunities for Citigroup and Hypertension Diagnostics
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Citigroup and Hypertension is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Hypertension Diagnostics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hypertension Diagnostics 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 Hypertension Diagnostics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hypertension Diagnostics has no effect on the direction of Citigroup i.e., Citigroup and Hypertension Diagnostics go up and down completely randomly.
Pair Corralation between Citigroup and Hypertension Diagnostics
Taking into account the 90-day investment horizon Citigroup is expected to generate 6.42 times less return on investment than Hypertension Diagnostics. But when comparing it to its historical volatility, Citigroup is 8.67 times less risky than Hypertension Diagnostics. It trades about 0.07 of its potential returns per unit of risk. Hypertension Diagnostics is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 0.32 in Hypertension Diagnostics on August 27, 2024 and sell it today you would lose (0.03) from holding Hypertension Diagnostics or give up 9.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 9.07% |
| Values | Daily Returns |
Citigroup vs. Hypertension Diagnostics
Performance |
| Timeline |
| Citigroup |
| Hypertension Diagnostics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Hypertension Diagnostics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Hypertension Diagnostics
The main advantage of trading using opposite Citigroup and Hypertension Diagnostics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Hypertension Diagnostics 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 Hypertension Diagnostics will offset losses from the drop in Hypertension Diagnostics' long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| Hypertension Diagnostics vs. LiveChain | Hypertension Diagnostics vs. CLST Holdings | Hypertension Diagnostics vs. Premier Products Group | Hypertension Diagnostics vs. Coastal Capital Acq |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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