Correlation Between Citigroup and Evolve Global
Can any of the company-specific risk be diversified away by investing in both Citigroup and Evolve Global 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 Evolve Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Evolve Global Healthcare, you can compare the effects of market volatilities on Citigroup and Evolve Global 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 Evolve Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Evolve Global.
Diversification Opportunities for Citigroup and Evolve Global
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Evolve is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Evolve Global Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evolve Global Healthcare 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 Evolve Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evolve Global Healthcare has no effect on the direction of Citigroup i.e., Citigroup and Evolve Global go up and down completely randomly.
Pair Corralation between Citigroup and Evolve Global
Taking into account the 90-day investment horizon Citigroup is expected to generate 3.07 times more return on investment than Evolve Global. However, Citigroup is 3.07 times more volatile than Evolve Global Healthcare. It trades about 0.13 of its potential returns per unit of risk. Evolve Global Healthcare is currently generating about -0.24 per unit of risk. If you would invest 6,092 in Citigroup on September 2, 2024 and sell it today you would earn a total of 995.00 from holding Citigroup or generate 16.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Evolve Global Healthcare
Performance |
| Timeline |
| Citigroup |
| Evolve Global Healthcare |
Citigroup and Evolve Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Evolve Global
The main advantage of trading using opposite Citigroup and Evolve Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Evolve Global 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 Evolve Global will offset losses from the drop in Evolve Global's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Evolve Global vs. Evolve Innovation Index | Evolve Global vs. Evolve Banks Enhanced | Evolve Global vs. Evolve Global Materials | Evolve Global vs. Evolve Cyber Security |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| CEOs Directory Screen CEOs from public companies around the world | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |