Correlation Between Citigroup and Nordea Invest
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By analyzing existing cross correlation between Citigroup and Nordea Invest Basis, you can compare the effects of market volatilities on Citigroup and Nordea Invest 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 Nordea Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Nordea Invest.
Diversification Opportunities for Citigroup and Nordea Invest
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and Nordea is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Nordea Invest Basis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordea Invest Basis 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 Nordea Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordea Invest Basis has no effect on the direction of Citigroup i.e., Citigroup and Nordea Invest go up and down completely randomly.
Pair Corralation between Citigroup and Nordea Invest
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.96 times more return on investment than Nordea Invest. However, Citigroup is 1.96 times more volatile than Nordea Invest Basis. It trades about 0.19 of its potential returns per unit of risk. Nordea Invest Basis is currently generating about 0.18 per unit of risk. If you would invest 6,900 in Citigroup on September 19, 2024 and sell it today you would earn a total of 212.00 from holding Citigroup or generate 3.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Citigroup vs. Nordea Invest Basis
Performance |
| Timeline |
| Citigroup |
| Nordea Invest Basis |
Citigroup and Nordea Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Nordea Invest
The main advantage of trading using opposite Citigroup and Nordea Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Nordea Invest 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 Nordea Invest will offset losses from the drop in Nordea Invest's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Nordea Invest vs. Lollands Bank | Nordea Invest vs. Hvidbjerg Bank | Nordea Invest vs. PARKEN Sport Entertainment | Nordea Invest vs. Sydbank AS |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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