Correlation Between Citigroup and Millennium Food
Can any of the company-specific risk be diversified away by investing in both Citigroup and Millennium Food 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 Millennium Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Millennium Food Tech LP, you can compare the effects of market volatilities on Citigroup and Millennium Food 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 Millennium Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Millennium Food.
Diversification Opportunities for Citigroup and Millennium Food
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Citigroup and Millennium is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Millennium Food Tech LP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Millennium Food Tech 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 Millennium Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Millennium Food Tech has no effect on the direction of Citigroup i.e., Citigroup and Millennium Food go up and down completely randomly.
Pair Corralation between Citigroup and Millennium Food
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.94 times more return on investment than Millennium Food. However, Citigroup is 1.06 times less risky than Millennium Food. It trades about 0.26 of its potential returns per unit of risk. Millennium Food Tech LP is currently generating about -0.1 per unit of risk. If you would invest 6,361 in Citigroup on September 1, 2024 and sell it today you would earn a total of 726.00 from holding Citigroup or generate 11.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 85.71% |
| Values | Daily Returns |
Citigroup vs. Millennium Food Tech LP
Performance |
| Timeline |
| Citigroup |
| Millennium Food Tech |
Citigroup and Millennium Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Millennium Food
The main advantage of trading using opposite Citigroup and Millennium Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Millennium Food 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 Millennium Food will offset losses from the drop in Millennium Food's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Millennium Food vs. Harel Insurance Investments | Millennium Food vs. Rapac Communication Infrastructure | Millennium Food vs. ICL Israel Chemicals | Millennium Food vs. Bezeq Israeli Telecommunication |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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