Correlation Between Citigroup and Minaurum Gold
Can any of the company-specific risk be diversified away by investing in both Citigroup and Minaurum Gold 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 Minaurum Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Minaurum Gold, you can compare the effects of market volatilities on Citigroup and Minaurum Gold 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 Minaurum Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Minaurum Gold.
Diversification Opportunities for Citigroup and Minaurum Gold
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and Minaurum is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Minaurum Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minaurum Gold 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 Minaurum Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Minaurum Gold has no effect on the direction of Citigroup i.e., Citigroup and Minaurum Gold go up and down completely randomly.
Pair Corralation between Citigroup and Minaurum Gold
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.31 times more return on investment than Minaurum Gold. However, Citigroup is 3.27 times less risky than Minaurum Gold. It trades about 0.09 of its potential returns per unit of risk. Minaurum Gold is currently generating about 0.02 per unit of risk. If you would invest 5,476 in Citigroup on September 1, 2024 and sell it today you would earn a total of 1,611 from holding Citigroup or generate 29.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Minaurum Gold
Performance |
| Timeline |
| Citigroup |
| Minaurum Gold |
Citigroup and Minaurum Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Minaurum Gold
The main advantage of trading using opposite Citigroup and Minaurum Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Minaurum Gold 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 Minaurum Gold will offset losses from the drop in Minaurum Gold's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Minaurum Gold vs. Defiance Silver Corp | Minaurum Gold vs. Altiplano Metals | Minaurum Gold vs. Independence Gold Corp | Minaurum Gold vs. Galway Metals |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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