Correlation Between Citigroup and Alps/corecommodity
Can any of the company-specific risk be diversified away by investing in both Citigroup and Alps/corecommodity 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 Alps/corecommodity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Alpscorecommodity Management Pletecommoditiessm, you can compare the effects of market volatilities on Citigroup and Alps/corecommodity 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 Alps/corecommodity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Alps/corecommodity.
Diversification Opportunities for Citigroup and Alps/corecommodity
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Citigroup and Alps/corecommodity is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Alpscorecommodity Management P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alps/corecommodity 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 Alps/corecommodity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alps/corecommodity has no effect on the direction of Citigroup i.e., Citigroup and Alps/corecommodity go up and down completely randomly.
Pair Corralation between Citigroup and Alps/corecommodity
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.17 times more return on investment than Alps/corecommodity. However, Citigroup is 2.17 times more volatile than Alpscorecommodity Management Pletecommoditiessm. It trades about 0.15 of its potential returns per unit of risk. Alpscorecommodity Management Pletecommoditiessm is currently generating about 0.01 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 Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Alpscorecommodity Management P
Performance |
| Timeline |
| Citigroup |
| Alps/corecommodity |
Citigroup and Alps/corecommodity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Alps/corecommodity
The main advantage of trading using opposite Citigroup and Alps/corecommodity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Alps/corecommodity 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 Alps/corecommodity will offset losses from the drop in Alps/corecommodity's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| Alps/corecommodity vs. Alpskotak India Growth | Alps/corecommodity vs. Alpskotak India Growth | Alps/corecommodity vs. Alpskotak India Growth | Alps/corecommodity vs. Alpskotak India Growth |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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