Correlation Between Citigroup and Link Mobility
Can any of the company-specific risk be diversified away by investing in both Citigroup and Link Mobility 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 Link Mobility into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Link Mobility Group, you can compare the effects of market volatilities on Citigroup and Link Mobility 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 Link Mobility. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Link Mobility.
Diversification Opportunities for Citigroup and Link Mobility
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Citigroup and Link is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Link Mobility Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Link Mobility Group 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 Link Mobility. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Link Mobility Group has no effect on the direction of Citigroup i.e., Citigroup and Link Mobility go up and down completely randomly.
Pair Corralation between Citigroup and Link Mobility
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.7 times more return on investment than Link Mobility. However, Citigroup is 1.42 times less risky than Link Mobility. It trades about 0.2 of its potential returns per unit of risk. Link Mobility Group is currently generating about -0.09 per unit of risk. If you would invest 6,412 in Citigroup on August 30, 2024 and sell it today you would earn a total of 604.00 from holding Citigroup or generate 9.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Link Mobility Group
Performance |
| Timeline |
| Citigroup |
| Link Mobility Group |
Citigroup and Link Mobility Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Link Mobility
The main advantage of trading using opposite Citigroup and Link Mobility positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Link Mobility 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 Link Mobility will offset losses from the drop in Link Mobility's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Link Mobility vs. Crayon Group Holding | Link Mobility vs. NRC Group ASA | Link Mobility vs. Pexip Holding ASA | Link Mobility vs. Europris ASA |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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