Correlation Between Citigroup and MGX Minerals
Can any of the company-specific risk be diversified away by investing in both Citigroup and MGX Minerals 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 MGX Minerals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and MGX Minerals, you can compare the effects of market volatilities on Citigroup and MGX Minerals 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 MGX Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and MGX Minerals.
Diversification Opportunities for Citigroup and MGX Minerals
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and MGX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and MGX Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MGX Minerals 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 MGX Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MGX Minerals has no effect on the direction of Citigroup i.e., Citigroup and MGX Minerals go up and down completely randomly.
Pair Corralation between Citigroup and MGX Minerals
If you would invest 5,683 in Citigroup on September 12, 2024 and sell it today you would earn a total of 1,567 from holding Citigroup or generate 27.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. MGX Minerals
Performance |
| Timeline |
| Citigroup |
| MGX Minerals |
Citigroup and MGX Minerals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and MGX Minerals
The main advantage of trading using opposite Citigroup and MGX Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, MGX Minerals 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 MGX Minerals will offset losses from the drop in MGX Minerals' long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| MGX Minerals vs. Ascendant Resources | MGX Minerals vs. Transition Metals Corp | MGX Minerals vs. Lotus Resources Limited | MGX Minerals vs. Wallbridge Mining |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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