Correlation Between Citigroup and Lithium South
Can any of the company-specific risk be diversified away by investing in both Citigroup and Lithium South 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 Lithium South into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Lithium South Development, you can compare the effects of market volatilities on Citigroup and Lithium South 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 Lithium South. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Lithium South.
Diversification Opportunities for Citigroup and Lithium South
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Lithium is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Lithium South Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lithium South Development 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 Lithium South. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lithium South Development has no effect on the direction of Citigroup i.e., Citigroup and Lithium South go up and down completely randomly.
Pair Corralation between Citigroup and Lithium South
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.26 times more return on investment than Lithium South. However, Citigroup is 3.81 times less risky than Lithium South. It trades about 0.08 of its potential returns per unit of risk. Lithium South Development is currently generating about -0.05 per unit of risk. If you would invest 4,525 in Citigroup on August 31, 2024 and sell it today you would earn a total of 2,562 from holding Citigroup or generate 56.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Citigroup vs. Lithium South Development
Performance |
| Timeline |
| Citigroup |
| Lithium South Development |
Citigroup and Lithium South Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Lithium South
The main advantage of trading using opposite Citigroup and Lithium South positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Lithium South 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 Lithium South will offset losses from the drop in Lithium South's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Lithium South vs. Solar Alliance Energy | Lithium South vs. Global X Active | Lithium South vs. Financial 15 Split | Lithium South vs. Rubicon Organics |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |