Correlation Between Citigroup and Lykos Metals
Can any of the company-specific risk be diversified away by investing in both Citigroup and Lykos Metals 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 Lykos Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Lykos Metals, you can compare the effects of market volatilities on Citigroup and Lykos Metals 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 Lykos Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Lykos Metals.
Diversification Opportunities for Citigroup and Lykos Metals
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Lykos is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Lykos Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lykos Metals 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 Lykos Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lykos Metals has no effect on the direction of Citigroup i.e., Citigroup and Lykos Metals go up and down completely randomly.
Pair Corralation between Citigroup and Lykos Metals
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.3 times more return on investment than Lykos Metals. However, Citigroup is 3.37 times less risky than Lykos Metals. It trades about 0.06 of its potential returns per unit of risk. Lykos Metals is currently generating about -0.06 per unit of risk. If you would invest 4,708 in Citigroup on October 11, 2024 and sell it today you would earn a total of 2,618 from holding Citigroup or generate 55.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Citigroup vs. Lykos Metals
Performance |
| Timeline |
| Citigroup |
| Lykos Metals |
Citigroup and Lykos Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Lykos Metals
The main advantage of trading using opposite Citigroup and Lykos Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Lykos Metals 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 Lykos Metals will offset losses from the drop in Lykos Metals' long position.| Citigroup vs. Royal Bank of | Citigroup vs. JPMorgan Chase Co | Citigroup vs. Nu Holdings | Citigroup vs. Canadian Imperial Bank |
| Lykos Metals vs. Firstwave Cloud Technology | Lykos Metals vs. Ras Technology Holdings | Lykos Metals vs. Sonic Healthcare | Lykos Metals vs. BTC Health Limited |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |