Correlation Between Citigroup and National Bank
Can any of the company-specific risk be diversified away by investing in both Citigroup and National Bank 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 National Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and National Bank of, you can compare the effects of market volatilities on Citigroup and National Bank 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 National Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and National Bank.
Diversification Opportunities for Citigroup and National Bank
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Citigroup and National is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and National Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Bank 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 National Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Bank has no effect on the direction of Citigroup i.e., Citigroup and National Bank go up and down completely randomly.
Pair Corralation between Citigroup and National Bank
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.92 times more return on investment than National Bank. However, Citigroup is 1.09 times less risky than National Bank. It trades about 0.26 of its potential returns per unit of risk. National Bank of is currently generating about -0.24 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 | 100.0% |
| Values | Daily Returns |
Citigroup vs. National Bank of
Performance |
| Timeline |
| Citigroup |
| National Bank |
Citigroup and National Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and National Bank
The main advantage of trading using opposite Citigroup and National Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, National Bank 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 National Bank will offset losses from the drop in National Bank's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| National Bank vs. Piraeus Bank SA | National Bank vs. Turkiye Garanti Bankasi | National Bank vs. Delhi Bank Corp | National Bank vs. Uwharrie Capital Corp |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |