Correlation Between Citigroup and Midi Utama
Can any of the company-specific risk be diversified away by investing in both Citigroup and Midi Utama 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 Midi Utama into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Midi Utama Indonesia, you can compare the effects of market volatilities on Citigroup and Midi Utama 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 Midi Utama. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Midi Utama.
Diversification Opportunities for Citigroup and Midi Utama
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and Midi is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Midi Utama Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Midi Utama Indonesia 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 Midi Utama. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Midi Utama Indonesia has no effect on the direction of Citigroup i.e., Citigroup and Midi Utama go up and down completely randomly.
Pair Corralation between Citigroup and Midi Utama
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.42 times more return on investment than Midi Utama. However, Citigroup is 1.42 times more volatile than Midi Utama Indonesia. It trades about 0.32 of its potential returns per unit of risk. Midi Utama Indonesia is currently generating about -0.35 per unit of risk. If you would invest 6,235 in Citigroup on September 3, 2024 and sell it today you would earn a total of 852.00 from holding Citigroup or generate 13.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Midi Utama Indonesia
Performance |
| Timeline |
| Citigroup |
| Midi Utama Indonesia |
Citigroup and Midi Utama Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Midi Utama
The main advantage of trading using opposite Citigroup and Midi Utama positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Midi Utama 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 Midi Utama will offset losses from the drop in Midi Utama's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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