Correlation Between Citigroup and Morphic Holding
Can any of the company-specific risk be diversified away by investing in both Citigroup and Morphic Holding 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 Morphic Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Morphic Holding, you can compare the effects of market volatilities on Citigroup and Morphic Holding 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 Morphic Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Morphic Holding.
Diversification Opportunities for Citigroup and Morphic Holding
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and Morphic is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Morphic Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Morphic Holding 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 Morphic Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Morphic Holding has no effect on the direction of Citigroup i.e., Citigroup and Morphic Holding go up and down completely randomly.
Pair Corralation between Citigroup and Morphic Holding
If you would invest 6,842 in Citigroup on October 20, 2024 and sell it today you would earn a total of 1,157 from holding Citigroup or generate 16.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Citigroup vs. Morphic Holding
Performance |
| Timeline |
| Citigroup |
| Morphic Holding |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Morphic Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Morphic Holding
The main advantage of trading using opposite Citigroup and Morphic Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Morphic Holding 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 Morphic Holding will offset losses from the drop in Morphic Holding's long position.| Citigroup vs. Bank of Montreal | Citigroup vs. Canadian Imperial Bank | Citigroup vs. Bank of Nova | Citigroup vs. JPMorgan Chase Co |
| Morphic Holding vs. Arcellx | Morphic Holding vs. Ventyx Biosciences | Morphic Holding vs. Immunocore Holdings | Morphic Holding vs. Vaxcyte |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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