Correlation Between Citigroup and Infrastructure
Can any of the company-specific risk be diversified away by investing in both Citigroup and Infrastructure 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 Infrastructure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Infrastructure And Energy, you can compare the effects of market volatilities on Citigroup and Infrastructure 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 Infrastructure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Infrastructure.
Diversification Opportunities for Citigroup and Infrastructure
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Infrastructure is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Infrastructure And Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infrastructure And Energy 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 Infrastructure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Infrastructure And Energy has no effect on the direction of Citigroup i.e., Citigroup and Infrastructure go up and down completely randomly.
Pair Corralation between Citigroup and Infrastructure
If you would invest 4,054 in Citigroup on September 12, 2024 and sell it today you would earn a total of 3,196 from holding Citigroup or generate 78.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Citigroup vs. Infrastructure And Energy
Performance |
| Timeline |
| Citigroup |
| Infrastructure And Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Infrastructure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Infrastructure
The main advantage of trading using opposite Citigroup and Infrastructure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Infrastructure 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 Infrastructure will offset losses from the drop in Infrastructure's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Infrastructure vs. Sapiens International | Infrastructure vs. NetSol Technologies | Infrastructure vs. NuRAN Wireless | Infrastructure vs. FiscalNote Holdings |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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