Correlation Between Citigroup and Meitav Trade
Can any of the company-specific risk be diversified away by investing in both Citigroup and Meitav Trade 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 Meitav Trade into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Meitav Trade Inv, you can compare the effects of market volatilities on Citigroup and Meitav Trade 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 Meitav Trade. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Meitav Trade.
Diversification Opportunities for Citigroup and Meitav Trade
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Citigroup and Meitav is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Meitav Trade Inv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meitav Trade Inv 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 Meitav Trade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meitav Trade Inv has no effect on the direction of Citigroup i.e., Citigroup and Meitav Trade go up and down completely randomly.
Pair Corralation between Citigroup and Meitav Trade
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.84 times less return on investment than Meitav Trade. In addition to that, Citigroup is 1.47 times more volatile than Meitav Trade Inv. It trades about 0.26 of its total potential returns per unit of risk. Meitav Trade Inv is currently generating about 0.69 per unit of volatility. If you would invest 961.00 in Meitav Trade Inv on September 1, 2024 and sell it today you would earn a total of 184.00 from holding Meitav Trade Inv or generate 19.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 85.71% |
| Values | Daily Returns |
Citigroup vs. Meitav Trade Inv
Performance |
| Timeline |
| Citigroup |
| Meitav Trade Inv |
Citigroup and Meitav Trade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Meitav Trade
The main advantage of trading using opposite Citigroup and Meitav Trade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Meitav Trade 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 Meitav Trade will offset losses from the drop in Meitav Trade's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Meitav Trade vs. Nice | Meitav Trade vs. The Gold Bond | Meitav Trade vs. Bank Leumi Le Israel | Meitav Trade vs. ICL Israel Chemicals |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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