Correlation Between Citigroup and LandisGyr Group
Can any of the company-specific risk be diversified away by investing in both Citigroup and LandisGyr Group 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 LandisGyr Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and LandisGyr Group AG, you can compare the effects of market volatilities on Citigroup and LandisGyr Group 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 LandisGyr Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and LandisGyr Group.
Diversification Opportunities for Citigroup and LandisGyr Group
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and LandisGyr is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and LandisGyr Group AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LandisGyr Group AG 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 LandisGyr Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LandisGyr Group AG has no effect on the direction of Citigroup i.e., Citigroup and LandisGyr Group go up and down completely randomly.
Pair Corralation between Citigroup and LandisGyr Group
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.05 times more return on investment than LandisGyr Group. However, Citigroup is 1.05 times more volatile than LandisGyr Group AG. It trades about 0.07 of its potential returns per unit of risk. LandisGyr Group AG is currently generating about 0.0 per unit of risk. If you would invest 4,524 in Citigroup on September 3, 2024 and sell it today you would earn a total of 2,563 from holding Citigroup or generate 56.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.58% |
| Values | Daily Returns |
Citigroup vs. LandisGyr Group AG
Performance |
| Timeline |
| Citigroup |
| LandisGyr Group AG |
Citigroup and LandisGyr Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and LandisGyr Group
The main advantage of trading using opposite Citigroup and LandisGyr Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, LandisGyr Group 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 LandisGyr Group will offset losses from the drop in LandisGyr Group's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| LandisGyr Group vs. Bucher Industries AG | LandisGyr Group vs. Komax Holding AG | LandisGyr Group vs. Comet Holding AG | LandisGyr Group vs. Bachem Holding AG |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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