Correlation Between Citigroup and AP Mller
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By analyzing existing cross correlation between Citigroup and AP Mller , you can compare the effects of market volatilities on Citigroup and AP Mller 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 AP Mller. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and AP Mller.
Diversification Opportunities for Citigroup and AP Mller
Poor diversification
The 3 months correlation between Citigroup and MAERSK-A is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and AP Mller in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AP Mller 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 AP Mller. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AP Mller has no effect on the direction of Citigroup i.e., Citigroup and AP Mller go up and down completely randomly.
Pair Corralation between Citigroup and AP Mller
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.8 times more return on investment than AP Mller. However, Citigroup is 1.25 times less risky than AP Mller. It trades about 0.07 of its potential returns per unit of risk. AP Mller is currently generating about 0.01 per unit of risk. If you would invest 6,079 in Citigroup on August 31, 2024 and sell it today you would earn a total of 1,008 from holding Citigroup or generate 16.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.45% |
| Values | Daily Returns |
Citigroup vs. AP Mller
Performance |
| Timeline |
| Citigroup |
| AP Mller |
Citigroup and AP Mller Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and AP Mller
The main advantage of trading using opposite Citigroup and AP Mller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, AP Mller 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 AP Mller will offset losses from the drop in AP Mller's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| AP Mller vs. AP Mller | AP Mller vs. DSV Panalpina AS | AP Mller vs. Danske Bank AS | AP Mller vs. FLSmidth Co |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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