Correlation Between Citigroup and Multistrada Arah
Can any of the company-specific risk be diversified away by investing in both Citigroup and Multistrada Arah 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 Multistrada Arah into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Multistrada Arah Sarana, you can compare the effects of market volatilities on Citigroup and Multistrada Arah 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 Multistrada Arah. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Multistrada Arah.
Diversification Opportunities for Citigroup and Multistrada Arah
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Multistrada is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Multistrada Arah Sarana in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multistrada Arah Sarana 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 Multistrada Arah. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multistrada Arah Sarana has no effect on the direction of Citigroup i.e., Citigroup and Multistrada Arah go up and down completely randomly.
Pair Corralation between Citigroup and Multistrada Arah
If you would invest 6,092 in Citigroup on September 2, 2024 and sell it today you would earn a total of 995.00 from holding Citigroup or generate 16.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Citigroup vs. Multistrada Arah Sarana
Performance |
| Timeline |
| Citigroup |
| Multistrada Arah Sarana |
Citigroup and Multistrada Arah Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Multistrada Arah
The main advantage of trading using opposite Citigroup and Multistrada Arah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Multistrada Arah 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 Multistrada Arah will offset losses from the drop in Multistrada Arah's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Multistrada Arah vs. Japfa Comfeed Indonesia | Multistrada Arah vs. Charoen Pokphand Indonesia | Multistrada Arah vs. Erajaya Swasembada Tbk | Multistrada Arah vs. Indofood Cbp Sukses |
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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