Correlation Between Citigroup and Hellenic Telecommunicatio
Can any of the company-specific risk be diversified away by investing in both Citigroup and Hellenic Telecommunicatio 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 Hellenic Telecommunicatio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Hellenic Telecommunications Organization, you can compare the effects of market volatilities on Citigroup and Hellenic Telecommunicatio 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 Hellenic Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Hellenic Telecommunicatio.
Diversification Opportunities for Citigroup and Hellenic Telecommunicatio
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Citigroup and Hellenic is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Hellenic Telecommunications Or in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hellenic Telecommunicatio 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 Hellenic Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hellenic Telecommunicatio has no effect on the direction of Citigroup i.e., Citigroup and Hellenic Telecommunicatio go up and down completely randomly.
Pair Corralation between Citigroup and Hellenic Telecommunicatio
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.27 times more return on investment than Hellenic Telecommunicatio. However, Citigroup is 1.27 times more volatile than Hellenic Telecommunications Organization. It trades about 0.25 of its potential returns per unit of risk. Hellenic Telecommunications Organization is currently generating about -0.13 per unit of risk. If you would invest 6,360 in Citigroup on August 28, 2024 and sell it today you would earn a total of 715.00 from holding Citigroup or generate 11.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Citigroup vs. Hellenic Telecommunications Or
Performance |
| Timeline |
| Citigroup |
| Hellenic Telecommunicatio |
Citigroup and Hellenic Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Hellenic Telecommunicatio
The main advantage of trading using opposite Citigroup and Hellenic Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Hellenic Telecommunicatio 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 Hellenic Telecommunicatio will offset losses from the drop in Hellenic Telecommunicatio's long position.| Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal | Citigroup vs. Bank of Nova |
| Hellenic Telecommunicatio vs. Greek Organization of | Hellenic Telecommunicatio vs. Mytilineos SA | Hellenic Telecommunicatio vs. Public Power | Hellenic Telecommunicatio vs. Motor Oil Corinth |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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