Correlation Between Citigroup and Jamieson Wellness
Can any of the company-specific risk be diversified away by investing in both Citigroup and Jamieson Wellness 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 Jamieson Wellness into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Jamieson Wellness, you can compare the effects of market volatilities on Citigroup and Jamieson Wellness 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 Jamieson Wellness. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Jamieson Wellness.
Diversification Opportunities for Citigroup and Jamieson Wellness
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Citigroup and Jamieson is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Jamieson Wellness in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jamieson Wellness 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 Jamieson Wellness. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jamieson Wellness has no effect on the direction of Citigroup i.e., Citigroup and Jamieson Wellness go up and down completely randomly.
Pair Corralation between Citigroup and Jamieson Wellness
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.32 times more return on investment than Jamieson Wellness. However, Citigroup is 1.32 times more volatile than Jamieson Wellness. It trades about 0.19 of its potential returns per unit of risk. Jamieson Wellness is currently generating about 0.0 per unit of risk. If you would invest 6,083 in Citigroup on October 24, 2024 and sell it today you would earn a total of 1,916 from holding Citigroup or generate 31.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.78% |
| Values | Daily Returns |
Citigroup vs. Jamieson Wellness
Performance |
| Timeline |
| Citigroup |
| Jamieson Wellness |
Citigroup and Jamieson Wellness Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Jamieson Wellness
The main advantage of trading using opposite Citigroup and Jamieson Wellness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Jamieson Wellness 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 Jamieson Wellness will offset losses from the drop in Jamieson Wellness' long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Jamieson Wellness vs. Enghouse Systems | Jamieson Wellness vs. Kinaxis | Jamieson Wellness vs. Waste Connections | Jamieson Wellness vs. Open Text Corp |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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