Correlation Between Citigroup and MLRN Projects
Can any of the company-specific risk be diversified away by investing in both Citigroup and MLRN Projects 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 MLRN Projects into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and MLRN Projects and, you can compare the effects of market volatilities on Citigroup and MLRN Projects 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 MLRN Projects. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and MLRN Projects.
Diversification Opportunities for Citigroup and MLRN Projects
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and MLRN is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and MLRN Projects and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MLRN Projects 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 MLRN Projects. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MLRN Projects has no effect on the direction of Citigroup i.e., Citigroup and MLRN Projects go up and down completely randomly.
Pair Corralation between Citigroup and MLRN Projects
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.19 times less return on investment than MLRN Projects. In addition to that, Citigroup is 1.32 times more volatile than MLRN Projects and. It trades about 0.21 of its total potential returns per unit of risk. MLRN Projects and is currently generating about 0.33 per unit of volatility. If you would invest 63,114 in MLRN Projects and on August 29, 2024 and sell it today you would earn a total of 6,056 from holding MLRN Projects and or generate 9.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 81.82% |
| Values | Daily Returns |
Citigroup vs. MLRN Projects and
Performance |
| Timeline |
| Citigroup |
| MLRN Projects |
Citigroup and MLRN Projects Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and MLRN Projects
The main advantage of trading using opposite Citigroup and MLRN Projects positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, MLRN Projects 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 MLRN Projects will offset losses from the drop in MLRN Projects' long position.The idea behind Citigroup and MLRN Projects and pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| MLRN Projects vs. Oron Group Investments | MLRN Projects vs. Libra Insurance | MLRN Projects vs. Netz Hotels | MLRN Projects vs. Homebiogas |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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