Correlation Between Citigroup and Isracann Biosciences
Can any of the company-specific risk be diversified away by investing in both Citigroup and Isracann Biosciences 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 Isracann Biosciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Isracann Biosciences, you can compare the effects of market volatilities on Citigroup and Isracann Biosciences 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 Isracann Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Isracann Biosciences.
Diversification Opportunities for Citigroup and Isracann Biosciences
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Citigroup and Isracann is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Isracann Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Isracann Biosciences 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 Isracann Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Isracann Biosciences has no effect on the direction of Citigroup i.e., Citigroup and Isracann Biosciences go up and down completely randomly.
Pair Corralation between Citigroup and Isracann Biosciences
Taking into account the 90-day investment horizon Citigroup is expected to generate 13.71 times less return on investment than Isracann Biosciences. But when comparing it to its historical volatility, Citigroup is 39.17 times less risky than Isracann Biosciences. It trades about 0.11 of its potential returns per unit of risk. Isracann Biosciences is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1.10 in Isracann Biosciences on September 2, 2024 and sell it today you would lose (1.10) from holding Isracann Biosciences or give up 100.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Citigroup vs. Isracann Biosciences
Performance |
| Timeline |
| Citigroup |
| Isracann Biosciences |
Citigroup and Isracann Biosciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Isracann Biosciences
The main advantage of trading using opposite Citigroup and Isracann Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Isracann Biosciences 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 Isracann Biosciences will offset losses from the drop in Isracann Biosciences' long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Isracann Biosciences vs. Holloman Energy Corp | Isracann Biosciences vs. cbdMD Inc | Isracann Biosciences vs. Evolus Inc | Isracann Biosciences vs. CV Sciences |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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