Correlation Between Citigroup and Hannover Rück
Specify exactly 2 symbols:
By analyzing existing cross correlation between Citigroup and Hannover Rck SE, you can compare the effects of market volatilities on Citigroup and Hannover Rück 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 Hannover Rück. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Hannover Rück.
Diversification Opportunities for Citigroup and Hannover Rück
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Citigroup and Hannover is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Hannover Rck SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hannover Rck SE 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 Hannover Rück. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hannover Rck SE has no effect on the direction of Citigroup i.e., Citigroup and Hannover Rück go up and down completely randomly.
Pair Corralation between Citigroup and Hannover Rück
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.28 times more return on investment than Hannover Rück. However, Citigroup is 1.28 times more volatile than Hannover Rck SE. It trades about 0.08 of its potential returns per unit of risk. Hannover Rck SE is currently generating about 0.06 per unit of risk. If you would invest 4,525 in Citigroup on August 31, 2024 and sell it today you would earn a total of 2,562 from holding Citigroup or generate 56.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.16% |
| Values | Daily Returns |
Citigroup vs. Hannover Rck SE
Performance |
| Timeline |
| Citigroup |
| Hannover Rck SE |
Citigroup and Hannover Rück Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Hannover Rück
The main advantage of trading using opposite Citigroup and Hannover Rück positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Hannover Rück 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 Hannover Rück will offset losses from the drop in Hannover Rück's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Hannover Rück vs. SBA Communications Corp | Hannover Rück vs. COMMERCIAL VEHICLE | Hannover Rück vs. Commercial Vehicle Group | Hannover Rück vs. Motorcar Parts of |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |