Correlation Between Citigroup and Investin Optimal
Can any of the company-specific risk be diversified away by investing in both Citigroup and Investin Optimal 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 Investin Optimal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Investin Optimal Stabil, you can compare the effects of market volatilities on Citigroup and Investin Optimal 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 Investin Optimal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Investin Optimal.
Diversification Opportunities for Citigroup and Investin Optimal
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Citigroup and Investin is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Investin Optimal Stabil in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investin Optimal Stabil 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 Investin Optimal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investin Optimal Stabil has no effect on the direction of Citigroup i.e., Citigroup and Investin Optimal go up and down completely randomly.
Pair Corralation between Citigroup and Investin Optimal
Taking into account the 90-day investment horizon Citigroup is expected to generate 8.52 times more return on investment than Investin Optimal. However, Citigroup is 8.52 times more volatile than Investin Optimal Stabil. It trades about 0.14 of its potential returns per unit of risk. Investin Optimal Stabil is currently generating about 0.22 per unit of risk. If you would invest 6,159 in Citigroup on September 20, 2024 and sell it today you would earn a total of 953.00 from holding Citigroup or generate 15.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 96.92% |
| Values | Daily Returns |
Citigroup vs. Investin Optimal Stabil
Performance |
| Timeline |
| Citigroup |
| Investin Optimal Stabil |
Citigroup and Investin Optimal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Investin Optimal
The main advantage of trading using opposite Citigroup and Investin Optimal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Investin Optimal 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 Investin Optimal will offset losses from the drop in Investin Optimal's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Investin Optimal vs. Vestjysk Bank AS | Investin Optimal vs. Laan Spar Bank | Investin Optimal vs. PARKEN Sport Entertainment | Investin Optimal vs. Kreditbanken AS |
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 Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |