Correlation Between Citigroup and Mediag3
Can any of the company-specific risk be diversified away by investing in both Citigroup and Mediag3 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 Mediag3 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Mediag3, you can compare the effects of market volatilities on Citigroup and Mediag3 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 Mediag3. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Mediag3.
Diversification Opportunities for Citigroup and Mediag3
Pay attention - limited upside
The 3 months correlation between Citigroup and Mediag3 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Mediag3 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mediag3 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 Mediag3. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mediag3 has no effect on the direction of Citigroup i.e., Citigroup and Mediag3 go up and down completely randomly.
Pair Corralation between Citigroup and Mediag3
If you would invest 6,393 in Citigroup on August 31, 2024 and sell it today you would earn a total of 623.00 from holding Citigroup or generate 9.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Mediag3
Performance |
| Timeline |
| Citigroup |
| Mediag3 |
Citigroup and Mediag3 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Mediag3
The main advantage of trading using opposite Citigroup and Mediag3 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Mediag3 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 Mediag3 will offset losses from the drop in Mediag3's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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