Correlation Between Citigroup and Leviathan Gold
Can any of the company-specific risk be diversified away by investing in both Citigroup and Leviathan Gold 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 Leviathan Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Leviathan Gold, you can compare the effects of market volatilities on Citigroup and Leviathan Gold 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 Leviathan Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Leviathan Gold.
Diversification Opportunities for Citigroup and Leviathan Gold
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and Leviathan is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Leviathan Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leviathan Gold 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 Leviathan Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leviathan Gold has no effect on the direction of Citigroup i.e., Citigroup and Leviathan Gold go up and down completely randomly.
Pair Corralation between Citigroup and Leviathan Gold
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.19 times more return on investment than Leviathan Gold. However, Citigroup is 5.21 times less risky than Leviathan Gold. It trades about 0.13 of its potential returns per unit of risk. Leviathan Gold is currently generating about 0.02 per unit of risk. If you would invest 4,053 in Citigroup on September 1, 2024 and sell it today you would earn a total of 3,034 from holding Citigroup or generate 74.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Leviathan Gold
Performance |
| Timeline |
| Citigroup |
| Leviathan Gold |
Citigroup and Leviathan Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Leviathan Gold
The main advantage of trading using opposite Citigroup and Leviathan Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Leviathan Gold 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 Leviathan Gold will offset losses from the drop in Leviathan Gold's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Leviathan Gold vs. Montage Gold Corp | Leviathan Gold vs. KORE Mining | Leviathan Gold vs. Cabral Gold | Leviathan Gold vs. Independence Gold 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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