Correlation Between Citigroup and M Cash
Can any of the company-specific risk be diversified away by investing in both Citigroup and M Cash 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 M Cash into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and M Cash Integrasi, you can compare the effects of market volatilities on Citigroup and M Cash 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 M Cash. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and M Cash.
Diversification Opportunities for Citigroup and M Cash
Very good diversification
The 3 months correlation between Citigroup and MCAS is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and M Cash Integrasi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on M Cash Integrasi 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 M Cash. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of M Cash Integrasi has no effect on the direction of Citigroup i.e., Citigroup and M Cash go up and down completely randomly.
Pair Corralation between Citigroup and M Cash
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.89 times less return on investment than M Cash. But when comparing it to its historical volatility, Citigroup is 2.12 times less risky than M Cash. It trades about 0.08 of its potential returns per unit of risk. M Cash Integrasi is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 87,000 in M Cash Integrasi on September 2, 2024 and sell it today you would earn a total of 25,500 from holding M Cash Integrasi or generate 29.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. M Cash Integrasi
Performance |
| Timeline |
| Citigroup |
| M Cash Integrasi |
Citigroup and M Cash Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and M Cash
The main advantage of trading using opposite Citigroup and M Cash positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, M Cash 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 M Cash will offset losses from the drop in M Cash's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| M Cash vs. NFC Indonesia PT | M Cash vs. Digital Mediatama Maxima | M Cash vs. Nusantara Voucher Distribution | M Cash vs. Kioson Komersial Indonesia |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |