Correlation Between Citigroup and Iofina Plc
Can any of the company-specific risk be diversified away by investing in both Citigroup and Iofina Plc 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 Iofina Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Iofina plc, you can compare the effects of market volatilities on Citigroup and Iofina Plc 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 Iofina Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Iofina Plc.
Diversification Opportunities for Citigroup and Iofina Plc
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and Iofina is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Iofina plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iofina plc 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 Iofina Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iofina plc has no effect on the direction of Citigroup i.e., Citigroup and Iofina Plc go up and down completely randomly.
Pair Corralation between Citigroup and Iofina Plc
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.59 times more return on investment than Iofina Plc. However, Citigroup is 1.69 times less risky than Iofina Plc. It trades about 0.07 of its potential returns per unit of risk. Iofina plc is currently generating about 0.01 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 | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Citigroup vs. Iofina plc
Performance |
| Timeline |
| Citigroup |
| Iofina plc |
Citigroup and Iofina Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Iofina Plc
The main advantage of trading using opposite Citigroup and Iofina Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Iofina Plc 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 Iofina Plc will offset losses from the drop in Iofina Plc's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Iofina Plc vs. Green Star Products | Iofina Plc vs. Greystone Logistics | Iofina Plc vs. Crown Electrokinetics Corp | Iofina Plc vs. Orica Ltd ADR |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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