Correlation Between Citigroup and MoneyHero Limited
Can any of the company-specific risk be diversified away by investing in both Citigroup and MoneyHero Limited 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 MoneyHero Limited into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and MoneyHero Limited Class, you can compare the effects of market volatilities on Citigroup and MoneyHero Limited 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 MoneyHero Limited. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and MoneyHero Limited.
Diversification Opportunities for Citigroup and MoneyHero Limited
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Citigroup and MoneyHero is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and MoneyHero Limited Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MoneyHero Limited Class 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 MoneyHero Limited. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MoneyHero Limited Class has no effect on the direction of Citigroup i.e., Citigroup and MoneyHero Limited go up and down completely randomly.
Pair Corralation between Citigroup and MoneyHero Limited
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.54 times more return on investment than MoneyHero Limited. However, Citigroup is 1.84 times less risky than MoneyHero Limited. It trades about 0.23 of its potential returns per unit of risk. MoneyHero Limited Class is currently generating about 0.01 per unit of risk. If you would invest 6,360 in Citigroup on August 27, 2024 and sell it today you would earn a total of 624.00 from holding Citigroup or generate 9.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. MoneyHero Limited Class
Performance |
| Timeline |
| Citigroup |
| MoneyHero Limited Class |
Citigroup and MoneyHero Limited Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and MoneyHero Limited
The main advantage of trading using opposite Citigroup and MoneyHero Limited positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, MoneyHero Limited 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 MoneyHero Limited will offset losses from the drop in MoneyHero Limited's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| MoneyHero Limited vs. Diageo PLC ADR | MoneyHero Limited vs. Albertsons Companies | MoneyHero Limited vs. Vita Coco | MoneyHero Limited vs. Keurig Dr Pepper |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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