Correlation Between Citigroup and Maverix Metals
Can any of the company-specific risk be diversified away by investing in both Citigroup and Maverix Metals 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 Maverix Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Maverix Metals, you can compare the effects of market volatilities on Citigroup and Maverix Metals 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 Maverix Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Maverix Metals.
Diversification Opportunities for Citigroup and Maverix Metals
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and Maverix is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Maverix Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maverix Metals 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 Maverix Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maverix Metals has no effect on the direction of Citigroup i.e., Citigroup and Maverix Metals go up and down completely randomly.
Pair Corralation between Citigroup and Maverix Metals
If you would invest 7,149 in Citigroup on October 15, 2024 and sell it today you would lose (9.00) from holding Citigroup or give up 0.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Citigroup vs. Maverix Metals
Performance |
| Timeline |
| Citigroup |
| Maverix Metals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Maverix Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Maverix Metals
The main advantage of trading using opposite Citigroup and Maverix Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Maverix Metals 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 Maverix Metals will offset losses from the drop in Maverix Metals' long position.| Citigroup vs. Nu Holdings | Citigroup vs. Canadian Imperial Bank | Citigroup vs. Bank of Montreal | Citigroup vs. Bank of Nova |
| Maverix Metals vs. GMO Internet | Maverix Metals vs. Spyre Therapeutics | Maverix Metals vs. Dave Busters Entertainment | Maverix Metals vs. Genfit |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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