Correlation Between Citigroup and Magellan Energy
Can any of the company-specific risk be diversified away by investing in both Citigroup and Magellan Energy 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 Magellan Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Magellan Energy, you can compare the effects of market volatilities on Citigroup and Magellan Energy 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 Magellan Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Magellan Energy.
Diversification Opportunities for Citigroup and Magellan Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Magellan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Magellan Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Magellan Energy 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 Magellan Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Magellan Energy has no effect on the direction of Citigroup i.e., Citigroup and Magellan Energy go up and down completely randomly.
Pair Corralation between Citigroup and Magellan Energy
If you would invest 6,360 in Citigroup on August 28, 2024 and sell it today you would earn a total of 715.00 from holding Citigroup or generate 11.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Magellan Energy
Performance |
| Timeline |
| Citigroup |
| Magellan Energy |
Citigroup and Magellan Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Magellan Energy
The main advantage of trading using opposite Citigroup and Magellan Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Magellan Energy 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 Magellan Energy will offset losses from the drop in Magellan Energy's long position.| Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal | Citigroup vs. Bank of Nova |
| Magellan Energy vs. Tiger Oil And | Magellan Energy vs. Black Dragon Resource | Magellan Energy vs. MMEX Resources Corp | Magellan Energy vs. Liberty Energy Corp |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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