Correlation Between Citigroup and Illumina
Can any of the company-specific risk be diversified away by investing in both Citigroup and Illumina 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 Illumina into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Illumina, you can compare the effects of market volatilities on Citigroup and Illumina 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 Illumina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Illumina.
Diversification Opportunities for Citigroup and Illumina
Pay attention - limited upside
The 3 months correlation between Citigroup and Illumina is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Illumina in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Illumina 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 Illumina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Illumina has no effect on the direction of Citigroup i.e., Citigroup and Illumina go up and down completely randomly.
Pair Corralation between Citigroup and Illumina
If you would invest 6,902 in Citigroup on September 13, 2024 and sell it today you would earn a total of 271.00 from holding Citigroup or generate 3.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Citigroup vs. Illumina
Performance |
| Timeline |
| Citigroup |
| Illumina |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Illumina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Illumina
The main advantage of trading using opposite Citigroup and Illumina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Illumina 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 Illumina will offset losses from the drop in Illumina's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Illumina vs. EPSILON HEALTHCARE LTD | Illumina vs. Sabra Health Care | Illumina vs. SHIP HEALTHCARE HLDGINC | Illumina vs. PRECISION DRILLING P |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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