Correlation Between Citigroup and Jacob Internet
Can any of the company-specific risk be diversified away by investing in both Citigroup and Jacob Internet 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 Jacob Internet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Jacob Internet Fund, you can compare the effects of market volatilities on Citigroup and Jacob Internet 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 Jacob Internet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Jacob Internet.
Diversification Opportunities for Citigroup and Jacob Internet
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Citigroup and Jacob is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Jacob Internet Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jacob Internet 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 Jacob Internet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jacob Internet has no effect on the direction of Citigroup i.e., Citigroup and Jacob Internet go up and down completely randomly.
Pair Corralation between Citigroup and Jacob Internet
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.92 times more return on investment than Jacob Internet. However, Citigroup is 1.09 times less risky than Jacob Internet. It trades about 0.15 of its potential returns per unit of risk. Jacob Internet Fund is currently generating about 0.1 per unit of risk. If you would invest 3,758 in Citigroup on August 26, 2024 and sell it today you would earn a total of 3,226 from holding Citigroup or generate 85.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Jacob Internet Fund
Performance |
| Timeline |
| Citigroup |
| Jacob Internet |
Citigroup and Jacob Internet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Jacob Internet
The main advantage of trading using opposite Citigroup and Jacob Internet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Jacob Internet 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 Jacob Internet will offset losses from the drop in Jacob Internet's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| Jacob Internet vs. Kinetics Internet Fund | Jacob Internet vs. Internet Ultrasector Profund | Jacob Internet vs. Firsthand Technology Opportunities | Jacob Internet vs. Berkshire Focus |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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