Correlation Between Citigroup and INTERSHOP Communications
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By analyzing existing cross correlation between Citigroup and INTERSHOP Communications Aktiengesellschaft, you can compare the effects of market volatilities on Citigroup and INTERSHOP Communications 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 INTERSHOP Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and INTERSHOP Communications.
Diversification Opportunities for Citigroup and INTERSHOP Communications
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and INTERSHOP is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and INTERSHOP Communications Aktie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTERSHOP Communications 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 INTERSHOP Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTERSHOP Communications has no effect on the direction of Citigroup i.e., Citigroup and INTERSHOP Communications go up and down completely randomly.
Pair Corralation between Citigroup and INTERSHOP Communications
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.59 times more return on investment than INTERSHOP Communications. However, Citigroup is 1.69 times less risky than INTERSHOP Communications. It trades about 0.07 of its potential returns per unit of risk. INTERSHOP Communications Aktiengesellschaft is currently generating about -0.01 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 Together |
| Strength | Significant |
| Accuracy | 98.21% |
| Values | Daily Returns |
Citigroup vs. INTERSHOP Communications Aktie
Performance |
| Timeline |
| Citigroup |
| INTERSHOP Communications |
Citigroup and INTERSHOP Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and INTERSHOP Communications
The main advantage of trading using opposite Citigroup and INTERSHOP Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, INTERSHOP Communications 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 INTERSHOP Communications will offset losses from the drop in INTERSHOP Communications' long position.The idea behind Citigroup and INTERSHOP Communications Aktiengesellschaft 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.| INTERSHOP Communications vs. Superior Plus Corp | INTERSHOP Communications vs. NMI Holdings | INTERSHOP Communications vs. Origin Agritech | INTERSHOP Communications vs. SIVERS SEMICONDUCTORS 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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