Correlation Between Citigroup and Immunovia Publ
Can any of the company-specific risk be diversified away by investing in both Citigroup and Immunovia Publ 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 Immunovia Publ into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Immunovia publ AB, you can compare the effects of market volatilities on Citigroup and Immunovia Publ 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 Immunovia Publ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Immunovia Publ.
Diversification Opportunities for Citigroup and Immunovia Publ
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Citigroup and Immunovia is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Immunovia publ AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immunovia publ AB 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 Immunovia Publ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immunovia publ AB has no effect on the direction of Citigroup i.e., Citigroup and Immunovia Publ go up and down completely randomly.
Pair Corralation between Citigroup and Immunovia Publ
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.11 times more return on investment than Immunovia Publ. However, Citigroup is 8.98 times less risky than Immunovia Publ. It trades about 0.07 of its potential returns per unit of risk. Immunovia publ AB is currently generating about 0.0 per unit of risk. If you would invest 4,118 in Citigroup on August 29, 2024 and sell it today you would earn a total of 2,857 from holding Citigroup or generate 69.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Citigroup vs. Immunovia publ AB
Performance |
| Timeline |
| Citigroup |
| Immunovia publ AB |
Citigroup and Immunovia Publ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Immunovia Publ
The main advantage of trading using opposite Citigroup and Immunovia Publ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Immunovia Publ 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 Immunovia Publ will offset losses from the drop in Immunovia Publ's long position.The idea behind Citigroup and Immunovia publ AB pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Immunovia Publ vs. ADDvise Group B | Immunovia Publ vs. Hanza AB | Immunovia Publ vs. Awardit AB | Immunovia Publ vs. Doxa AB |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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