Correlation Between Citigroup and Harel Index
Specify exactly 2 symbols:
By analyzing existing cross correlation between Citigroup and Harel Index Funds, you can compare the effects of market volatilities on Citigroup and Harel Index 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 Harel Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Harel Index.
Diversification Opportunities for Citigroup and Harel Index
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Citigroup and Harel is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Harel Index Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harel Index Funds 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 Harel Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harel Index Funds has no effect on the direction of Citigroup i.e., Citigroup and Harel Index go up and down completely randomly.
Pair Corralation between Citigroup and Harel Index
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.1 times less return on investment than Harel Index. In addition to that, Citigroup is 1.3 times more volatile than Harel Index Funds. It trades about 0.21 of its total potential returns per unit of risk. Harel Index Funds is currently generating about 0.3 per unit of volatility. If you would invest 54,580 in Harel Index Funds on August 29, 2024 and sell it today you would earn a total of 4,810 from holding Harel Index Funds or generate 8.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 81.82% |
| Values | Daily Returns |
Citigroup vs. Harel Index Funds
Performance |
| Timeline |
| Citigroup |
| Harel Index Funds |
Citigroup and Harel Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Harel Index
The main advantage of trading using opposite Citigroup and Harel Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Harel Index 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 Harel Index will offset losses from the drop in Harel Index's long position.The idea behind Citigroup and Harel Index Funds pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |