Correlation Between Citigroup and Mason Industrial
Can any of the company-specific risk be diversified away by investing in both Citigroup and Mason Industrial 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 Mason Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Mason Industrial Technology, you can compare the effects of market volatilities on Citigroup and Mason Industrial 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 Mason Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Mason Industrial.
Diversification Opportunities for Citigroup and Mason Industrial
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Citigroup and Mason is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Mason Industrial Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mason Industrial Tec 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 Mason Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mason Industrial Tec has no effect on the direction of Citigroup i.e., Citigroup and Mason Industrial go up and down completely randomly.
Pair Corralation between Citigroup and Mason Industrial
If you would invest 6,315 in Citigroup on September 2, 2024 and sell it today you would earn a total of 772.00 from holding Citigroup or generate 12.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Citigroup vs. Mason Industrial Technology
Performance |
| Timeline |
| Citigroup |
| Mason Industrial Tec |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Mason Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Mason Industrial
The main advantage of trading using opposite Citigroup and Mason Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Mason Industrial 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 Mason Industrial will offset losses from the drop in Mason Industrial's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Mason Industrial vs. The Joint Corp | Mason Industrial vs. SEI Investments | Mason Industrial vs. Nasdaq Inc | Mason Industrial vs. Summit Hotel Properties |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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