Correlation Between Citigroup and Limas Indonesia
Can any of the company-specific risk be diversified away by investing in both Citigroup and Limas Indonesia 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 Limas Indonesia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Limas Indonesia Makmur, you can compare the effects of market volatilities on Citigroup and Limas Indonesia 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 Limas Indonesia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Limas Indonesia.
Diversification Opportunities for Citigroup and Limas Indonesia
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Limas is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Limas Indonesia Makmur in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Limas Indonesia Makmur 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 Limas Indonesia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Limas Indonesia Makmur has no effect on the direction of Citigroup i.e., Citigroup and Limas Indonesia go up and down completely randomly.
Pair Corralation between Citigroup and Limas Indonesia
If you would invest 4,293 in Citigroup on September 3, 2024 and sell it today you would earn a total of 2,846 from holding Citigroup or generate 66.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.76% |
| Values | Daily Returns |
Citigroup vs. Limas Indonesia Makmur
Performance |
| Timeline |
| Citigroup |
| Limas Indonesia Makmur |
Citigroup and Limas Indonesia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Limas Indonesia
The main advantage of trading using opposite Citigroup and Limas Indonesia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Limas Indonesia 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 Limas Indonesia will offset losses from the drop in Limas Indonesia's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Limas Indonesia vs. Smartfren Telecom Tbk | Limas Indonesia vs. Weha Transportasi Indonesia | Limas Indonesia vs. Tridomain Performance Materials | Limas Indonesia vs. PT Data Sinergitama |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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