Correlation Between Citigroup and Wetzel SA
Can any of the company-specific risk be diversified away by investing in both Citigroup and Wetzel SA 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 Wetzel SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Wetzel SA, you can compare the effects of market volatilities on Citigroup and Wetzel SA 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 Wetzel SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Wetzel SA.
Diversification Opportunities for Citigroup and Wetzel SA
Poor diversification
The 3 months correlation between Citigroup and Wetzel is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Wetzel SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wetzel SA 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 Wetzel SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wetzel SA has no effect on the direction of Citigroup i.e., Citigroup and Wetzel SA go up and down completely randomly.
Pair Corralation between Citigroup and Wetzel SA
Taking into account the 90-day investment horizon Citigroup is expected to generate 3.29 times less return on investment than Wetzel SA. But when comparing it to its historical volatility, Citigroup is 4.64 times less risky than Wetzel SA. It trades about 0.29 of its potential returns per unit of risk. Wetzel SA is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 910.00 in Wetzel SA on August 26, 2024 and sell it today you would earn a total of 340.00 from holding Wetzel SA or generate 37.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Citigroup vs. Wetzel SA
Performance |
| Timeline |
| Citigroup |
| Wetzel SA |
Citigroup and Wetzel SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Wetzel SA
The main advantage of trading using opposite Citigroup and Wetzel SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Wetzel SA 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 Wetzel SA will offset losses from the drop in Wetzel SA's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| Wetzel SA vs. Lupatech SA | Wetzel SA vs. Rossi Residencial SA | Wetzel SA vs. Fras le SA | Wetzel SA vs. Clave Indices De |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |