Correlation Between Citigroup and Jembo Cable
Can any of the company-specific risk be diversified away by investing in both Citigroup and Jembo Cable 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 Jembo Cable into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Jembo Cable, you can compare the effects of market volatilities on Citigroup and Jembo Cable 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 Jembo Cable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Jembo Cable.
Diversification Opportunities for Citigroup and Jembo Cable
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and Jembo is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Jembo Cable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jembo Cable 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 Jembo Cable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jembo Cable has no effect on the direction of Citigroup i.e., Citigroup and Jembo Cable go up and down completely randomly.
Pair Corralation between Citigroup and Jembo Cable
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.27 times more return on investment than Jembo Cable. However, Citigroup is 1.27 times more volatile than Jembo Cable. It trades about 0.26 of its potential returns per unit of risk. Jembo Cable is currently generating about -0.01 per unit of risk. If you would invest 6,361 in Citigroup on September 1, 2024 and sell it today you would earn a total of 726.00 from holding Citigroup or generate 11.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Citigroup vs. Jembo Cable
Performance |
| Timeline |
| Citigroup |
| Jembo Cable |
Citigroup and Jembo Cable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Jembo Cable
The main advantage of trading using opposite Citigroup and Jembo Cable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Jembo Cable 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 Jembo Cable will offset losses from the drop in Jembo Cable's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Jembo Cable vs. Matahari Department Store | Jembo Cable vs. Multi Medika Internasional | Jembo Cable vs. Visi Media Asia | Jembo Cable vs. Bayan Resources Tbk |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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