Correlation Between Citigroup and Peak Bancorp
Can any of the company-specific risk be diversified away by investing in both Citigroup and Peak Bancorp 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 Peak Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Peak Bancorp, you can compare the effects of market volatilities on Citigroup and Peak Bancorp 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 Peak Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Peak Bancorp.
Diversification Opportunities for Citigroup and Peak Bancorp
-0.92 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Peak is -0.92. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Peak Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peak Bancorp 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 Peak Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peak Bancorp has no effect on the direction of Citigroup i.e., Citigroup and Peak Bancorp go up and down completely randomly.
Pair Corralation between Citigroup and Peak Bancorp
If you would invest 5,896 in Citigroup on September 13, 2024 and sell it today you would earn a total of 1,277 from holding Citigroup or generate 21.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 0.8% |
| Values | Daily Returns |
Citigroup vs. Peak Bancorp
Performance |
| Timeline |
| Citigroup |
| Peak Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Peak Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Peak Bancorp
The main advantage of trading using opposite Citigroup and Peak Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Peak Bancorp 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 Peak Bancorp will offset losses from the drop in Peak Bancorp's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Peak Bancorp vs. MVB Financial Corp | Peak Bancorp vs. Finward Bancorp | Peak Bancorp vs. First Community | Peak Bancorp vs. LINKBANCORP |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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