Correlation Between Citigroup and Le@p Technology
Can any of the company-specific risk be diversified away by investing in both Citigroup and Le@p Technology 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 Le@p Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Lep Technology, you can compare the effects of market volatilities on Citigroup and Le@p Technology 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 Le@p Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Le@p Technology.
Diversification Opportunities for Citigroup and Le@p Technology
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Le@p is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Lep Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Le@p Technology 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 Le@p Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Le@p Technology has no effect on the direction of Citigroup i.e., Citigroup and Le@p Technology go up and down completely randomly.
Pair Corralation between Citigroup and Le@p Technology
If you would invest 6,393 in Citigroup on August 31, 2024 and sell it today you would earn a total of 623.00 from holding Citigroup or generate 9.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Lep Technology
Performance |
| Timeline |
| Citigroup |
| Le@p Technology |
Citigroup and Le@p Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Le@p Technology
The main advantage of trading using opposite Citigroup and Le@p Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Le@p Technology 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 Le@p Technology will offset losses from the drop in Le@p Technology's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Le@p Technology vs. China Clean Energy | Le@p Technology vs. The Wendys Co | Le@p Technology vs. CapitaLand Investment Limited | Le@p Technology vs. MGIC Investment Corp |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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