Correlation Between Citigroup and LUXOR-B
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By analyzing existing cross correlation between Citigroup and Investeringsselskabet Luxor AS, you can compare the effects of market volatilities on Citigroup and LUXOR-B 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 LUXOR-B. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and LUXOR-B.
Diversification Opportunities for Citigroup and LUXOR-B
Average diversification
The 3 months correlation between Citigroup and LUXOR-B is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Investeringsselskabet Luxor AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investeringsselskabet 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 LUXOR-B. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investeringsselskabet has no effect on the direction of Citigroup i.e., Citigroup and LUXOR-B go up and down completely randomly.
Pair Corralation between Citigroup and LUXOR-B
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.97 times more return on investment than LUXOR-B. However, Citigroup is 1.03 times less risky than LUXOR-B. It trades about 0.21 of its potential returns per unit of risk. Investeringsselskabet Luxor AS is currently generating about -0.07 per unit of risk. If you would invest 6,360 in Citigroup on August 29, 2024 and sell it today you would earn a total of 615.00 from holding Citigroup or generate 9.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Citigroup vs. Investeringsselskabet Luxor AS
Performance |
| Timeline |
| Citigroup |
| Investeringsselskabet |
Citigroup and LUXOR-B Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and LUXOR-B
The main advantage of trading using opposite Citigroup and LUXOR-B positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, LUXOR-B 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 LUXOR-B will offset losses from the drop in LUXOR-B's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| LUXOR-B vs. Skjern Bank AS | LUXOR-B vs. Groenlandsbanken AS | LUXOR-B vs. Fynske Bank AS | LUXOR-B vs. Lollands Bank |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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