Correlation Between Citigroup and Hear Atlast
Can any of the company-specific risk be diversified away by investing in both Citigroup and Hear Atlast 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 Hear Atlast into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Hear Atlast Holdings, you can compare the effects of market volatilities on Citigroup and Hear Atlast 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 Hear Atlast. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Hear Atlast.
Diversification Opportunities for Citigroup and Hear Atlast
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and Hear is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Hear Atlast Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hear Atlast Holdings 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 Hear Atlast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hear Atlast Holdings has no effect on the direction of Citigroup i.e., Citigroup and Hear Atlast go up and down completely randomly.
Pair Corralation between Citigroup and Hear Atlast
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.14 times more return on investment than Hear Atlast. However, Citigroup is 7.15 times less risky than Hear Atlast. It trades about 0.26 of its potential returns per unit of risk. Hear Atlast Holdings is currently generating about -0.06 per unit of risk. If you would invest 6,361 in Citigroup on September 1, 2024 and sell it today you would earn a total of 726.00 from holding Citigroup or generate 11.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Hear Atlast Holdings
Performance |
| Timeline |
| Citigroup |
| Hear Atlast Holdings |
Citigroup and Hear Atlast Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Hear Atlast
The main advantage of trading using opposite Citigroup and Hear Atlast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Hear Atlast 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 Hear Atlast will offset losses from the drop in Hear Atlast's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Hear Atlast vs. Sysmex Corp | Hear Atlast vs. Coloplast AS | Hear Atlast vs. Essilor International SA | Hear Atlast vs. Coloplast A |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |