Correlation Between Citigroup and JPMF Global
Can any of the company-specific risk be diversified away by investing in both Citigroup and JPMF Global 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 JPMF Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and JPMF Global Natural, you can compare the effects of market volatilities on Citigroup and JPMF Global 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 JPMF Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and JPMF Global.
Diversification Opportunities for Citigroup and JPMF Global
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Citigroup and JPMF is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and JPMF Global Natural in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPMF Global Natural 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 JPMF Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JPMF Global Natural has no effect on the direction of Citigroup i.e., Citigroup and JPMF Global go up and down completely randomly.
Pair Corralation between Citigroup and JPMF Global
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.06 times more return on investment than JPMF Global. However, Citigroup is 2.06 times more volatile than JPMF Global Natural. It trades about 0.45 of its potential returns per unit of risk. JPMF Global Natural is currently generating about 0.27 per unit of risk. If you would invest 6,994 in Citigroup on November 2, 2024 and sell it today you would earn a total of 1,192 from holding Citigroup or generate 17.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
Citigroup vs. JPMF Global Natural
Performance |
| Timeline |
| Citigroup |
| JPMF Global Natural |
Citigroup and JPMF Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and JPMF Global
The main advantage of trading using opposite Citigroup and JPMF Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, JPMF Global 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 JPMF Global will offset losses from the drop in JPMF Global's long position.| Citigroup vs. Royal Bank of | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Canadian Imperial Bank |
| JPMF Global vs. Groupama Entreprises N | JPMF Global vs. Renaissance Europe C | JPMF Global vs. Superior Plus Corp | JPMF Global vs. Origin Agritech |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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