Correlation Between Citigroup and Icm Small
Can any of the company-specific risk be diversified away by investing in both Citigroup and Icm Small 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 Icm Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Icm Small Pany, you can compare the effects of market volatilities on Citigroup and Icm Small 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 Icm Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Icm Small.
Diversification Opportunities for Citigroup and Icm Small
Very poor diversification
The 3 months correlation between Citigroup and Icm is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Icm Small Pany in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Icm Small Pany 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 Icm Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Icm Small Pany has no effect on the direction of Citigroup i.e., Citigroup and Icm Small go up and down completely randomly.
Pair Corralation between Citigroup and Icm Small
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.43 times more return on investment than Icm Small. However, Citigroup is 1.43 times more volatile than Icm Small Pany. It trades about 0.07 of its potential returns per unit of risk. Icm Small Pany is currently generating about 0.08 per unit of risk. If you would invest 6,079 in Citigroup on September 1, 2024 and sell it today you would earn a total of 1,008 from holding Citigroup or generate 16.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.21% |
| Values | Daily Returns |
Citigroup vs. Icm Small Pany
Performance |
| Timeline |
| Citigroup |
| Icm Small Pany |
Citigroup and Icm Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Icm Small
The main advantage of trading using opposite Citigroup and Icm Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Icm Small 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 Icm Small will offset losses from the drop in Icm Small's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Icm Small vs. Amg Managers Montag | Icm Small vs. Europacific Growth Fund | Icm Small vs. Harbor Capital Appreciation | Icm Small vs. Crm Mid Cap |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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