Correlation Between Citigroup and Immuron
Can any of the company-specific risk be diversified away by investing in both Citigroup and Immuron 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 Immuron into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Immuron, you can compare the effects of market volatilities on Citigroup and Immuron 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 Immuron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Immuron.
Diversification Opportunities for Citigroup and Immuron
Pay attention - limited upside
The 3 months correlation between Citigroup and Immuron is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Immuron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immuron 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 Immuron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immuron has no effect on the direction of Citigroup i.e., Citigroup and Immuron go up and down completely randomly.
Pair Corralation between Citigroup and Immuron
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.41 times more return on investment than Immuron. However, Citigroup is 2.42 times less risky than Immuron. It trades about 0.07 of its potential returns per unit of risk. Immuron is currently generating about 0.0 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 Against |
| Strength | Weak |
| Accuracy | 97.67% |
| Values | Daily Returns |
Citigroup vs. Immuron
Performance |
| Timeline |
| Citigroup |
| Immuron |
Citigroup and Immuron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Immuron
The main advantage of trading using opposite Citigroup and Immuron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Immuron 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 Immuron will offset losses from the drop in Immuron's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Immuron vs. Phoslock Environmental Technologies | Immuron vs. Alternative Investment Trust | Immuron vs. Red Hill Iron | Immuron vs. Computershare |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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