Correlation Between Citigroup and Zencash Investment
Can any of the company-specific risk be diversified away by investing in both Citigroup and Zencash Investment 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 Zencash Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Zencash Investment Trust, you can compare the effects of market volatilities on Citigroup and Zencash Investment 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 Zencash Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Zencash Investment.
Diversification Opportunities for Citigroup and Zencash Investment
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Citigroup and Zencash is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Zencash Investment Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zencash Investment Trust 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 Zencash Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zencash Investment Trust has no effect on the direction of Citigroup i.e., Citigroup and Zencash Investment go up and down completely randomly.
Pair Corralation between Citigroup and Zencash Investment
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.23 times more return on investment than Zencash Investment. However, Citigroup is 4.3 times less risky than Zencash Investment. It trades about 0.04 of its potential returns per unit of risk. Zencash Investment Trust is currently generating about -0.13 per unit of risk. If you would invest 7,250 in Citigroup on October 11, 2024 and sell it today you would earn a total of 76.00 from holding Citigroup or generate 1.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Zencash Investment Trust
Performance |
| Timeline |
| Citigroup |
| Zencash Investment Trust |
Citigroup and Zencash Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Zencash Investment
The main advantage of trading using opposite Citigroup and Zencash Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Zencash Investment 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 Zencash Investment will offset losses from the drop in Zencash Investment's long position.| Citigroup vs. Royal Bank of | Citigroup vs. JPMorgan Chase Co | Citigroup vs. Nu Holdings | Citigroup vs. Canadian Imperial Bank |
| Zencash Investment vs. XCPCNL Business Services | Zencash Investment vs. International Consolidated Companies | Zencash Investment vs. Mills Music Trust | Zencash Investment vs. Citrine Global Corp |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |