Correlation Between Citigroup and Eskay Mining
Can any of the company-specific risk be diversified away by investing in both Citigroup and Eskay Mining 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 Eskay Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Eskay Mining Corp, you can compare the effects of market volatilities on Citigroup and Eskay Mining 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 Eskay Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Eskay Mining.
Diversification Opportunities for Citigroup and Eskay Mining
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Citigroup and Eskay is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Eskay Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eskay Mining Corp 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 Eskay Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eskay Mining Corp has no effect on the direction of Citigroup i.e., Citigroup and Eskay Mining go up and down completely randomly.
Pair Corralation between Citigroup and Eskay Mining
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.27 times more return on investment than Eskay Mining. However, Citigroup is 3.77 times less risky than Eskay Mining. It trades about 0.08 of its potential returns per unit of risk. Eskay Mining Corp is currently generating about -0.01 per unit of risk. If you would invest 4,075 in Citigroup on December 7, 2024 and sell it today you would earn a total of 3,221 from holding Citigroup or generate 79.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.6% |
| Values | Daily Returns |
Citigroup vs. Eskay Mining Corp
Performance |
| Timeline |
| Citigroup |
| Eskay Mining Corp |
Citigroup and Eskay Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Eskay Mining
The main advantage of trading using opposite Citigroup and Eskay Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Eskay Mining 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 Eskay Mining will offset losses from the drop in Eskay Mining's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Eskay Mining vs. Casio Computer CoLtd | Eskay Mining vs. Gaztransport Technigaz SA | Eskay Mining vs. Singapore Telecommunications Limited | Eskay Mining vs. Transportadora de Gas |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |