Correlation Between Citigroup and Akros Monthly
Can any of the company-specific risk be diversified away by investing in both Citigroup and Akros Monthly 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 Akros Monthly into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Akros Monthly Payout, you can compare the effects of market volatilities on Citigroup and Akros Monthly 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 Akros Monthly. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Akros Monthly.
Diversification Opportunities for Citigroup and Akros Monthly
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and Akros is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Akros Monthly Payout in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akros Monthly Payout 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 Akros Monthly. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akros Monthly Payout has no effect on the direction of Citigroup i.e., Citigroup and Akros Monthly go up and down completely randomly.
Pair Corralation between Citigroup and Akros Monthly
Taking into account the 90-day investment horizon Citigroup is expected to generate 3.01 times more return on investment than Akros Monthly. However, Citigroup is 3.01 times more volatile than Akros Monthly Payout. It trades about 0.25 of its potential returns per unit of risk. Akros Monthly Payout is currently generating about 0.07 per unit of risk. If you would invest 6,360 in Citigroup on August 28, 2024 and sell it today you would earn a total of 715.00 from holding Citigroup or generate 11.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Akros Monthly Payout
Performance |
| Timeline |
| Citigroup |
| Akros Monthly Payout |
Citigroup and Akros Monthly Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Akros Monthly
The main advantage of trading using opposite Citigroup and Akros Monthly positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Akros Monthly 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 Akros Monthly will offset losses from the drop in Akros Monthly's long position.| Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal | Citigroup vs. Bank of Nova |
| Akros Monthly vs. Bionik Laboratories Corp | Akros Monthly vs. Mobivity Holdings | Akros Monthly vs. Rafina Innovations | Akros Monthly vs. Magellan Gold Corp |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |