Correlation Between Citigroup and Ictsi Jasa
Can any of the company-specific risk be diversified away by investing in both Citigroup and Ictsi Jasa 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 Ictsi Jasa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Ictsi Jasa Prima, you can compare the effects of market volatilities on Citigroup and Ictsi Jasa 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 Ictsi Jasa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Ictsi Jasa.
Diversification Opportunities for Citigroup and Ictsi Jasa
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Citigroup and Ictsi is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Ictsi Jasa Prima in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ictsi Jasa Prima 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 Ictsi Jasa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ictsi Jasa Prima has no effect on the direction of Citigroup i.e., Citigroup and Ictsi Jasa go up and down completely randomly.
Pair Corralation between Citigroup and Ictsi Jasa
Taking into account the 90-day investment horizon Citigroup is expected to generate 3.42 times less return on investment than Ictsi Jasa. But when comparing it to its historical volatility, Citigroup is 3.51 times less risky than Ictsi Jasa. It trades about 0.27 of its potential returns per unit of risk. Ictsi Jasa Prima is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 374,000 in Ictsi Jasa Prima on September 2, 2024 and sell it today you would earn a total of 158,500 from holding Ictsi Jasa Prima or generate 42.38% 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. Ictsi Jasa Prima
Performance |
| Timeline |
| Citigroup |
| Ictsi Jasa Prima |
Citigroup and Ictsi Jasa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Ictsi Jasa
The main advantage of trading using opposite Citigroup and Ictsi Jasa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Ictsi Jasa 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 Ictsi Jasa will offset losses from the drop in Ictsi Jasa's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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