Correlation Between Citigroup and EureKING
Can any of the company-specific risk be diversified away by investing in both Citigroup and EureKING 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 EureKING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and EureKING SA, you can compare the effects of market volatilities on Citigroup and EureKING 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 EureKING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and EureKING.
Diversification Opportunities for Citigroup and EureKING
Pay attention - limited upside
The 3 months correlation between Citigroup and EureKING is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and EureKING SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EureKING SA 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 EureKING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EureKING SA has no effect on the direction of Citigroup i.e., Citigroup and EureKING go up and down completely randomly.
Pair Corralation between Citigroup and EureKING
If you would invest 6,043 in Citigroup on September 25, 2024 and sell it today you would earn a total of 1,058 from holding Citigroup or generate 17.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Citigroup vs. EureKING SA
Performance |
| Timeline |
| Citigroup |
| EureKING SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and EureKING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and EureKING
The main advantage of trading using opposite Citigroup and EureKING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, EureKING 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 EureKING will offset losses from the drop in EureKING's long position.The idea behind Citigroup and EureKING SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| EureKING vs. Jacquet Metal Service | EureKING vs. Veolia Environnement VE | EureKING vs. Avenir Telecom SA | EureKING vs. Kaufman Et Broad |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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