Correlation Between Citigroup and MOL Nyrt
Can any of the company-specific risk be diversified away by investing in both Citigroup and MOL Nyrt 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 MOL Nyrt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and MOL Nyrt, you can compare the effects of market volatilities on Citigroup and MOL Nyrt 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 MOL Nyrt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and MOL Nyrt.
Diversification Opportunities for Citigroup and MOL Nyrt
Modest diversification
The 3 months correlation between Citigroup and MOL is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and MOL Nyrt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MOL Nyrt 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 MOL Nyrt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MOL Nyrt has no effect on the direction of Citigroup i.e., Citigroup and MOL Nyrt go up and down completely randomly.
Pair Corralation between Citigroup and MOL Nyrt
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.96 times more return on investment than MOL Nyrt. However, Citigroup is 1.96 times more volatile than MOL Nyrt. It trades about 0.2 of its potential returns per unit of risk. MOL Nyrt is currently generating about 0.11 per unit of risk. If you would invest 6,412 in Citigroup on August 30, 2024 and sell it today you would earn a total of 604.00 from holding Citigroup or generate 9.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Citigroup vs. MOL Nyrt
Performance |
| Timeline |
| Citigroup |
| MOL Nyrt |
Citigroup and MOL Nyrt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and MOL Nyrt
The main advantage of trading using opposite Citigroup and MOL Nyrt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, MOL Nyrt 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 MOL Nyrt will offset losses from the drop in MOL Nyrt's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| MOL Nyrt vs. CIG Pannonia Life | MOL Nyrt vs. Infineon Technologies AG | MOL Nyrt vs. AKKO Invest Nyrt | MOL Nyrt vs. AutoWallis Nyrt |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Transaction History View history of all your transactions and understand their impact on performance |