Correlation Between Citigroup and ICZOOM Group
Can any of the company-specific risk be diversified away by investing in both Citigroup and ICZOOM Group 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 ICZOOM Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and ICZOOM Group Class, you can compare the effects of market volatilities on Citigroup and ICZOOM Group 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 ICZOOM Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and ICZOOM Group.
Diversification Opportunities for Citigroup and ICZOOM Group
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and ICZOOM is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and ICZOOM Group Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ICZOOM Group Class 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 ICZOOM Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ICZOOM Group Class has no effect on the direction of Citigroup i.e., Citigroup and ICZOOM Group go up and down completely randomly.
Pair Corralation between Citigroup and ICZOOM Group
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.84 times more return on investment than ICZOOM Group. However, Citigroup is 1.2 times less risky than ICZOOM Group. It trades about 0.24 of its potential returns per unit of risk. ICZOOM Group Class is currently generating about 0.17 per unit of risk. If you would invest 6,245 in Citigroup on August 25, 2024 and sell it today you would earn a total of 739.00 from holding Citigroup or generate 11.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. ICZOOM Group Class
Performance |
| Timeline |
| Citigroup |
| ICZOOM Group Class |
Citigroup and ICZOOM Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and ICZOOM Group
The main advantage of trading using opposite Citigroup and ICZOOM Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, ICZOOM Group 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 ICZOOM Group will offset losses from the drop in ICZOOM Group's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| ICZOOM Group vs. Park Hotels Resorts | ICZOOM Group vs. Western Digital | ICZOOM Group vs. Digi International | ICZOOM Group vs. Meli Hotels International |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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