Correlation Between Citigroup and Hedge Real
Can any of the company-specific risk be diversified away by investing in both Citigroup and Hedge Real 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 Hedge Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Hedge Real Estate, you can compare the effects of market volatilities on Citigroup and Hedge Real 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 Hedge Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Hedge Real.
Diversification Opportunities for Citigroup and Hedge Real
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Citigroup and Hedge is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Hedge Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hedge Real Estate 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 Hedge Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hedge Real Estate has no effect on the direction of Citigroup i.e., Citigroup and Hedge Real go up and down completely randomly.
Pair Corralation between Citigroup and Hedge Real
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.78 times more return on investment than Hedge Real. However, Citigroup is 1.78 times more volatile than Hedge Real Estate. It trades about 0.13 of its potential returns per unit of risk. Hedge Real Estate is currently generating about -0.01 per unit of risk. If you would invest 6,092 in Citigroup on September 2, 2024 and sell it today you would earn a total of 995.00 from holding Citigroup or generate 16.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Hedge Real Estate
Performance |
| Timeline |
| Citigroup |
| Hedge Real Estate |
Citigroup and Hedge Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Hedge Real
The main advantage of trading using opposite Citigroup and Hedge Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Hedge Real 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 Hedge Real will offset losses from the drop in Hedge Real's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Hedge Real vs. Real Estate Investment | Hedge Real vs. Trx Real Estate | Hedge Real vs. ZAVIT REAL ESTATE | Hedge Real vs. WHG REAL ESTATE |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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