Correlation Between Citigroup and Previsto International

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Can any of the company-specific risk be diversified away by investing in both Citigroup and Previsto International 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 Previsto International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Previsto International Holdings, you can compare the effects of market volatilities on Citigroup and Previsto International 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 Previsto International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Previsto International.

Diversification Opportunities for Citigroup and Previsto International

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Citigroup and Previsto is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Previsto International Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Previsto International 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 Previsto International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Previsto International has no effect on the direction of Citigroup i.e., Citigroup and Previsto International go up and down completely randomly.

Pair Corralation between Citigroup and Previsto International

If you would invest  6,815  in Citigroup on September 15, 2024 and sell it today you would earn a total of  286.00  from holding Citigroup or generate 4.2% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Citigroup  vs.  Previsto International Holding

 Performance 
       Timeline  
Citigroup 

Risk-Adjusted Performance

13 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating fundamental indicators, Citigroup exhibited solid returns over the last few months and may actually be approaching a breakup point.
Previsto International 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Previsto International Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Previsto International is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Citigroup and Previsto International Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Citigroup and Previsto International

The main advantage of trading using opposite Citigroup and Previsto International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Previsto International 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 Previsto International will offset losses from the drop in Previsto International's long position.
The idea behind Citigroup and Previsto International Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.

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