Correlation Between Citigroup and ATyr Pharma
Can any of the company-specific risk be diversified away by investing in both Citigroup and ATyr Pharma 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 ATyr Pharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and ATyr Pharma, you can compare the effects of market volatilities on Citigroup and ATyr Pharma 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 ATyr Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and ATyr Pharma.
Diversification Opportunities for Citigroup and ATyr Pharma
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and ATyr is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and ATyr Pharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATyr Pharma 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 ATyr Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATyr Pharma has no effect on the direction of Citigroup i.e., Citigroup and ATyr Pharma go up and down completely randomly.
Pair Corralation between Citigroup and ATyr Pharma
If you would invest 6,104 in Citigroup on August 28, 2024 and sell it today you would earn a total of 871.00 from holding Citigroup or generate 14.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Citigroup vs. ATyr Pharma
Performance |
| Timeline |
| Citigroup |
| ATyr Pharma |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and ATyr Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and ATyr Pharma
The main advantage of trading using opposite Citigroup and ATyr Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, ATyr Pharma 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 ATyr Pharma will offset losses from the drop in ATyr Pharma's long position.The idea behind Citigroup and ATyr Pharma 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.| ATyr Pharma vs. Mereo BioPharma Group | ATyr Pharma vs. Terns Pharmaceuticals | ATyr Pharma vs. PDS Biotechnology Corp | ATyr Pharma vs. Inozyme Pharma |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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