Correlation Between Citigroup and Nanobiotix
Can any of the company-specific risk be diversified away by investing in both Citigroup and Nanobiotix 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 Nanobiotix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Nanobiotix SA, you can compare the effects of market volatilities on Citigroup and Nanobiotix 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 Nanobiotix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Nanobiotix.
Diversification Opportunities for Citigroup and Nanobiotix
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Nanobiotix is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Nanobiotix SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanobiotix 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 Nanobiotix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanobiotix SA has no effect on the direction of Citigroup i.e., Citigroup and Nanobiotix go up and down completely randomly.
Pair Corralation between Citigroup and Nanobiotix
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.83 times more return on investment than Nanobiotix. However, Citigroup is 1.21 times less risky than Nanobiotix. It trades about 0.15 of its potential returns per unit of risk. Nanobiotix SA is currently generating about -0.33 per unit of risk. If you would invest 6,133 in Citigroup on August 28, 2024 and sell it today you would earn a total of 842.00 from holding Citigroup or generate 13.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Nanobiotix SA
Performance |
| Timeline |
| Citigroup |
| Nanobiotix SA |
Citigroup and Nanobiotix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Nanobiotix
The main advantage of trading using opposite Citigroup and Nanobiotix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Nanobiotix 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 Nanobiotix will offset losses from the drop in Nanobiotix's long position.The idea behind Citigroup and Nanobiotix SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Nanobiotix vs. Vetoquinol | Nanobiotix vs. Trigano SA | Nanobiotix vs. Biomerieux SA | Nanobiotix vs. Sartorius Stedim Biotech |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |