Correlation Between Citigroup and Mydas Real
Can any of the company-specific risk be diversified away by investing in both Citigroup and Mydas Real 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 Mydas Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Mydas Real Estate, you can compare the effects of market volatilities on Citigroup and Mydas Real 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 Mydas Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Mydas Real.
Diversification Opportunities for Citigroup and Mydas Real
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Mydas is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Mydas Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mydas Real Estate 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 Mydas Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mydas Real Estate has no effect on the direction of Citigroup i.e., Citigroup and Mydas Real go up and down completely randomly.
Pair Corralation between Citigroup and Mydas Real
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.58 times more return on investment than Mydas Real. However, Citigroup is 1.73 times less risky than Mydas Real. It trades about 0.26 of its potential returns per unit of risk. Mydas Real Estate is currently generating about -0.02 per unit of risk. If you would invest 6,361 in Citigroup on September 1, 2024 and sell it today you would earn a total of 726.00 from holding Citigroup or generate 11.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 85.71% |
| Values | Daily Returns |
Citigroup vs. Mydas Real Estate
Performance |
| Timeline |
| Citigroup |
| Mydas Real Estate |
Citigroup and Mydas Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Mydas Real
The main advantage of trading using opposite Citigroup and Mydas Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Mydas Real 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 Mydas Real will offset losses from the drop in Mydas Real's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Mydas Real vs. Fattal 1998 Holdings | Mydas Real vs. Azrieli Group | Mydas Real vs. Clal Insurance Enterprises |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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