Correlation Between Citigroup and Ivy Apollo
Can any of the company-specific risk be diversified away by investing in both Citigroup and Ivy Apollo 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 Ivy Apollo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Ivy Apollo Multi Asset, you can compare the effects of market volatilities on Citigroup and Ivy Apollo 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 Ivy Apollo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Ivy Apollo.
Diversification Opportunities for Citigroup and Ivy Apollo
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and Ivy is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Ivy Apollo Multi Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ivy Apollo Multi 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 Ivy Apollo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ivy Apollo Multi has no effect on the direction of Citigroup i.e., Citigroup and Ivy Apollo go up and down completely randomly.
Pair Corralation between Citigroup and Ivy Apollo
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.56 times more return on investment than Ivy Apollo. However, Citigroup is 2.56 times more volatile than Ivy Apollo Multi Asset. It trades about 0.07 of its potential returns per unit of risk. Ivy Apollo Multi Asset is currently generating about 0.02 per unit of risk. If you would invest 4,206 in Citigroup on August 26, 2024 and sell it today you would earn a total of 2,778 from holding Citigroup or generate 66.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Ivy Apollo Multi Asset
Performance |
| Timeline |
| Citigroup |
| Ivy Apollo Multi |
Citigroup and Ivy Apollo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Ivy Apollo
The main advantage of trading using opposite Citigroup and Ivy Apollo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Ivy Apollo 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 Ivy Apollo will offset losses from the drop in Ivy Apollo's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| Ivy Apollo vs. Ivy Large Cap | Ivy Apollo vs. Ivy Small Cap | Ivy Apollo vs. Ivy High Income | Ivy Apollo vs. Ivy Apollo Multi Asset |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |