Correlation Between Citigroup and Hub Cyber
Can any of the company-specific risk be diversified away by investing in both Citigroup and Hub Cyber 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 Hub Cyber into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Hub Cyber Security, you can compare the effects of market volatilities on Citigroup and Hub Cyber 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 Hub Cyber. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Hub Cyber.
Diversification Opportunities for Citigroup and Hub Cyber
Poor diversification
The 3 months correlation between Citigroup and Hub is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Hub Cyber Security in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hub Cyber Security 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 Hub Cyber. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hub Cyber Security has no effect on the direction of Citigroup i.e., Citigroup and Hub Cyber go up and down completely randomly.
Pair Corralation between Citigroup and Hub Cyber
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.13 times less return on investment than Hub Cyber. But when comparing it to its historical volatility, Citigroup is 6.11 times less risky than Hub Cyber. It trades about 0.07 of its potential returns per unit of risk. Hub Cyber Security is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 118.00 in Hub Cyber Security on December 5, 2024 and sell it today you would lose (58.00) from holding Hub Cyber Security or give up 49.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Hub Cyber Security
Performance |
| Timeline |
| Citigroup |
| Hub Cyber Security |
Citigroup and Hub Cyber Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Hub Cyber
The main advantage of trading using opposite Citigroup and Hub Cyber positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Hub Cyber 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 Hub Cyber will offset losses from the drop in Hub Cyber's long position.| Citigroup vs. JPMorgan Chase Co | ||
| Citigroup vs. Wells Fargo | ||
| Citigroup vs. Toronto Dominion Bank | ||
| Citigroup vs. Nu Holdings |
| Hub Cyber vs. authID Inc | ||
| Hub Cyber vs. VirnetX Holding Corp | ||
| Hub Cyber vs. Aurora Mobile | ||
| Hub Cyber vs. GigaCloud Technology Class |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |