Correlation Between Citigroup and Jaguar Animal
Can any of the company-specific risk be diversified away by investing in both Citigroup and Jaguar Animal 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 Jaguar Animal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Jaguar Animal Health, you can compare the effects of market volatilities on Citigroup and Jaguar Animal 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 Jaguar Animal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Jaguar Animal.
Diversification Opportunities for Citigroup and Jaguar Animal
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Citigroup and Jaguar is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Jaguar Animal Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jaguar Animal Health 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 Jaguar Animal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jaguar Animal Health has no effect on the direction of Citigroup i.e., Citigroup and Jaguar Animal go up and down completely randomly.
Pair Corralation between Citigroup and Jaguar Animal
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.37 times more return on investment than Jaguar Animal. However, Citigroup is 2.67 times less risky than Jaguar Animal. It trades about 0.21 of its potential returns per unit of risk. Jaguar Animal Health is currently generating about -0.07 per unit of risk. If you would invest 6,360 in Citigroup on August 29, 2024 and sell it today you would earn a total of 615.00 from holding Citigroup or generate 9.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Jaguar Animal Health
Performance |
| Timeline |
| Citigroup |
| Jaguar Animal Health |
Citigroup and Jaguar Animal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Jaguar Animal
The main advantage of trading using opposite Citigroup and Jaguar Animal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Jaguar Animal 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 Jaguar Animal will offset losses from the drop in Jaguar Animal's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Jaguar Animal vs. Ibio Inc | Jaguar Animal vs. GeoVax Labs | Jaguar Animal vs. Ocugen Inc | Jaguar Animal vs. Zura Bio Limited |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |