Correlation Between Citigroup and N Able
Can any of the company-specific risk be diversified away by investing in both Citigroup and N Able 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 N Able into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and N Able Inc, you can compare the effects of market volatilities on Citigroup and N Able 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 N Able. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and N Able.
Diversification Opportunities for Citigroup and N Able
Pay attention - limited upside
The 3 months correlation between Citigroup and NABL is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and N Able Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on N Able Inc 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 N Able. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of N Able Inc has no effect on the direction of Citigroup i.e., Citigroup and N Able go up and down completely randomly.
Pair Corralation between Citigroup and N Able
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.95 times more return on investment than N Able. However, Citigroup is 1.05 times less risky than N Able. It trades about 0.08 of its potential returns per unit of risk. N Able Inc is currently generating about -0.04 per unit of risk. If you would invest 4,525 in Citigroup on August 31, 2024 and sell it today you would earn a total of 2,562 from holding Citigroup or generate 56.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. N Able Inc
Performance |
| Timeline |
| Citigroup |
| N Able Inc |
Citigroup and N Able Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and N Able
The main advantage of trading using opposite Citigroup and N Able positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, N Able 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 N Able will offset losses from the drop in N Able's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| N Able vs. Innodata | N Able vs. International Business Machines | N Able vs. Aurora Innovation | N Able vs. BigBearai Holdings |
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.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |