Correlation Between Citigroup and Metallic Minerals
Can any of the company-specific risk be diversified away by investing in both Citigroup and Metallic 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 Metallic Minerals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Metallic Minerals Corp, you can compare the effects of market volatilities on Citigroup and Metallic 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 Metallic Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Metallic Minerals.
Diversification Opportunities for Citigroup and Metallic Minerals
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Citigroup and Metallic is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Metallic Minerals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Metallic Minerals Corp 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 Metallic Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Metallic Minerals Corp has no effect on the direction of Citigroup i.e., Citigroup and Metallic Minerals go up and down completely randomly.
Pair Corralation between Citigroup and Metallic Minerals
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.29 times more return on investment than Metallic Minerals. However, Citigroup is 3.5 times less risky than Metallic Minerals. It trades about 0.27 of its potential returns per unit of risk. Metallic Minerals Corp is currently generating about -0.31 per unit of risk. 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Metallic Minerals Corp
Performance |
| Timeline |
| Citigroup |
| Metallic Minerals Corp |
Citigroup and Metallic Minerals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Metallic Minerals
The main advantage of trading using opposite Citigroup and Metallic Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Metallic 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 Metallic Minerals will offset losses from the drop in Metallic Minerals' long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Metallic Minerals vs. Defiance Silver Corp | Metallic Minerals vs. AbraSilver Resource Corp | Metallic Minerals vs. Summa Silver Corp | Metallic Minerals vs. Honey Badger Silver |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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