Correlation Between Citigroup and Huddly AS
Can any of the company-specific risk be diversified away by investing in both Citigroup and Huddly AS 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 Huddly AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Huddly AS, you can compare the effects of market volatilities on Citigroup and Huddly AS 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 Huddly AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Huddly AS.
Diversification Opportunities for Citigroup and Huddly AS
Excellent diversification
The 3 months correlation between Citigroup and Huddly is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Huddly AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huddly AS 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 Huddly AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huddly AS has no effect on the direction of Citigroup i.e., Citigroup and Huddly AS go up and down completely randomly.
Pair Corralation between Citigroup and Huddly AS
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.22 times more return on investment than Huddly AS. However, Citigroup is 4.49 times less risky than Huddly AS. It trades about 0.12 of its potential returns per unit of risk. Huddly AS is currently generating about -0.03 per unit of risk. If you would invest 4,004 in Citigroup on September 12, 2024 and sell it today you would earn a total of 3,200 from holding Citigroup or generate 79.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.7% |
| Values | Daily Returns |
Citigroup vs. Huddly AS
Performance |
| Timeline |
| Citigroup |
| Huddly AS |
Citigroup and Huddly AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Huddly AS
The main advantage of trading using opposite Citigroup and Huddly AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Huddly AS 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 Huddly AS will offset losses from the drop in Huddly AS's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Huddly AS vs. Pexip Holding ASA | Huddly AS vs. Airthings ASA | Huddly AS vs. Aker Horizons AS | Huddly AS vs. Cambi ASA |
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 CEOs Directory module to screen CEOs from public companies around the world.
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