Correlation Between Citigroup and Mobly SA
Can any of the company-specific risk be diversified away by investing in both Citigroup and Mobly SA 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 Mobly SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Mobly SA, you can compare the effects of market volatilities on Citigroup and Mobly SA 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 Mobly SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Mobly SA.
Diversification Opportunities for Citigroup and Mobly SA
Excellent diversification
The 3 months correlation between Citigroup and Mobly is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Mobly SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mobly SA 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 Mobly SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mobly SA has no effect on the direction of Citigroup i.e., Citigroup and Mobly SA go up and down completely randomly.
Pair Corralation between Citigroup and Mobly SA
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.23 times more return on investment than Mobly SA. However, Citigroup is 4.37 times less risky than Mobly SA. It trades about 0.2 of its potential returns per unit of risk. Mobly SA is currently generating about -0.34 per unit of risk. If you would invest 6,902 in Citigroup on September 13, 2024 and sell it today you would earn a total of 241.00 from holding Citigroup or generate 3.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Citigroup vs. Mobly SA
Performance |
| Timeline |
| Citigroup |
| Mobly SA |
Citigroup and Mobly SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Mobly SA
The main advantage of trading using opposite Citigroup and Mobly SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Mobly SA 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 Mobly SA will offset losses from the drop in Mobly SA's long position.| Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal | Citigroup vs. Bank of Nova |
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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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