Correlation Between Citigroup and IQVIA Holdings
Can any of the company-specific risk be diversified away by investing in both Citigroup and IQVIA Holdings 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 IQVIA Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and IQVIA Holdings, you can compare the effects of market volatilities on Citigroup and IQVIA Holdings 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 IQVIA Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and IQVIA Holdings.
Diversification Opportunities for Citigroup and IQVIA Holdings
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and IQVIA is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and IQVIA Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IQVIA Holdings 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 IQVIA Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IQVIA Holdings has no effect on the direction of Citigroup i.e., Citigroup and IQVIA Holdings go up and down completely randomly.
Pair Corralation between Citigroup and IQVIA Holdings
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.07 times more return on investment than IQVIA Holdings. However, Citigroup is 1.07 times more volatile than IQVIA Holdings. It trades about 0.12 of its potential returns per unit of risk. IQVIA Holdings is currently generating about -0.17 per unit of risk. If you would invest 6,092 in Citigroup on August 31, 2024 and sell it today you would earn a total of 924.00 from holding Citigroup or generate 15.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. IQVIA Holdings
Performance |
| Timeline |
| Citigroup |
| IQVIA Holdings |
Citigroup and IQVIA Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and IQVIA Holdings
The main advantage of trading using opposite Citigroup and IQVIA Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, IQVIA Holdings 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 IQVIA Holdings will offset losses from the drop in IQVIA Holdings' long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| IQVIA Holdings vs. Charles River Laboratories | IQVIA Holdings vs. Laboratory of | IQVIA Holdings vs. Medpace Holdings | IQVIA Holdings vs. Waters |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |