Correlation Between Citigroup and Malteries Franco
Can any of the company-specific risk be diversified away by investing in both Citigroup and Malteries Franco 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 Malteries Franco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Malteries Franco Belges Socit, you can compare the effects of market volatilities on Citigroup and Malteries Franco 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 Malteries Franco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Malteries Franco.
Diversification Opportunities for Citigroup and Malteries Franco
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Citigroup and Malteries is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Malteries Franco Belges Socit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Malteries Franco Belges 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 Malteries Franco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Malteries Franco Belges has no effect on the direction of Citigroup i.e., Citigroup and Malteries Franco go up and down completely randomly.
Pair Corralation between Citigroup and Malteries Franco
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.99 times more return on investment than Malteries Franco. However, Citigroup is 1.01 times less risky than Malteries Franco. It trades about 0.07 of its potential returns per unit of risk. Malteries Franco Belges Socit is currently generating about 0.04 per unit of risk. If you would invest 4,134 in Citigroup on August 30, 2024 and sell it today you would earn a total of 2,882 from holding Citigroup or generate 69.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 93.54% |
| Values | Daily Returns |
Citigroup vs. Malteries Franco Belges Socit
Performance |
| Timeline |
| Citigroup |
| Malteries Franco Belges |
Citigroup and Malteries Franco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Malteries Franco
The main advantage of trading using opposite Citigroup and Malteries Franco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Malteries Franco 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 Malteries Franco will offset losses from the drop in Malteries Franco's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Malteries Franco vs. Grard Perrier Industrie | Malteries Franco vs. Robertet SA | Malteries Franco vs. Thermador Groupe SA | Malteries Franco vs. Piscines Desjoyaux SA |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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