Correlation Between Citigroup and New Age
Can any of the company-specific risk be diversified away by investing in both Citigroup and New Age 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 New Age into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and New Age Metals, you can compare the effects of market volatilities on Citigroup and New Age 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 New Age. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and New Age.
Diversification Opportunities for Citigroup and New Age
Very weak diversification
The 3 months correlation between Citigroup and New is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and New Age Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Age Metals 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 New Age. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Age Metals has no effect on the direction of Citigroup i.e., Citigroup and New Age go up and down completely randomly.
Pair Corralation between Citigroup and New Age
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.07 times less return on investment than New Age. But when comparing it to its historical volatility, Citigroup is 6.11 times less risky than New Age. It trades about 0.07 of its potential returns per unit of risk. New Age Metals is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 28.00 in New Age Metals on August 29, 2024 and sell it today you would lose (19.50) from holding New Age Metals or give up 69.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Citigroup vs. New Age Metals
Performance |
| Timeline |
| Citigroup |
| New Age Metals |
Citigroup and New Age Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and New Age
The main advantage of trading using opposite Citigroup and New Age positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, New Age 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 New Age will offset losses from the drop in New Age's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| New Age vs. Stillwater Critical Minerals | New Age vs. Grid Metals Corp | New Age vs. Kore Mining | New Age vs. Imagine Lithium |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |