Correlation Between Citigroup and Hall Of
Can any of the company-specific risk be diversified away by investing in both Citigroup and Hall Of 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 Hall Of into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Hall of Fame, you can compare the effects of market volatilities on Citigroup and Hall Of 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 Hall Of. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Hall Of.
Diversification Opportunities for Citigroup and Hall Of
Excellent diversification
The 3 months correlation between Citigroup and Hall is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Hall of Fame in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hall of Fame 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 Hall Of. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hall of Fame has no effect on the direction of Citigroup i.e., Citigroup and Hall Of go up and down completely randomly.
Pair Corralation between Citigroup and Hall Of
Taking into account the 90-day investment horizon Citigroup is expected to generate 8.63 times less return on investment than Hall Of. But when comparing it to its historical volatility, Citigroup is 15.75 times less risky than Hall Of. It trades about 0.21 of its potential returns per unit of risk. Hall of Fame is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 0.93 in Hall of Fame on August 31, 2024 and sell it today you would lose (0.14) from holding Hall of Fame or give up 15.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Citigroup vs. Hall of Fame
Performance |
| Timeline |
| Citigroup |
| Hall of Fame |
Citigroup and Hall Of Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Hall Of
The main advantage of trading using opposite Citigroup and Hall Of positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Hall Of 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 Hall Of will offset losses from the drop in Hall Of's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Hall Of vs. HUMANA INC | Hall Of vs. Aquagold International | Hall Of vs. Barloworld Ltd ADR | Hall Of vs. Thrivent High Yield |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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