Correlation Between Citigroup and Cue Health
Can any of the company-specific risk be diversified away by investing in both Citigroup and Cue Health 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 Cue Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Cue Health, you can compare the effects of market volatilities on Citigroup and Cue Health 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 Cue Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Cue Health.
Diversification Opportunities for Citigroup and Cue Health
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Cue is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Cue Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cue Health 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 Cue Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cue Health has no effect on the direction of Citigroup i.e., Citigroup and Cue Health go up and down completely randomly.
Pair Corralation between Citigroup and Cue Health
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.13 times more return on investment than Cue Health. However, Citigroup is 7.97 times less risky than Cue Health. It trades about 0.08 of its potential returns per unit of risk. Cue Health is currently generating about -0.1 per unit of risk. If you would invest 4,544 in Citigroup on September 1, 2024 and sell it today you would earn a total of 2,543 from holding Citigroup or generate 55.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 69.35% |
| Values | Daily Returns |
Citigroup vs. Cue Health
Performance |
| Timeline |
| Citigroup |
| Cue Health |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Cue Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Cue Health
The main advantage of trading using opposite Citigroup and Cue Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Cue Health 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 Cue Health will offset losses from the drop in Cue Health's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Cue Health vs. CareMax | Cue Health vs. Premier | Cue Health vs. HealthStream | Cue Health vs. EUDA Health 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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