Correlation Between Citigroup and Minerva Neurosciences
Can any of the company-specific risk be diversified away by investing in both Citigroup and Minerva Neurosciences 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 Minerva Neurosciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Minerva Neurosciences, you can compare the effects of market volatilities on Citigroup and Minerva Neurosciences 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 Minerva Neurosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Minerva Neurosciences.
Diversification Opportunities for Citigroup and Minerva Neurosciences
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Minerva is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Minerva Neurosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minerva Neurosciences 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 Minerva Neurosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Minerva Neurosciences has no effect on the direction of Citigroup i.e., Citigroup and Minerva Neurosciences go up and down completely randomly.
Pair Corralation between Citigroup and Minerva Neurosciences
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.84 times less return on investment than Minerva Neurosciences. But when comparing it to its historical volatility, Citigroup is 4.63 times less risky than Minerva Neurosciences. It trades about 0.07 of its potential returns per unit of risk. Minerva Neurosciences is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 328.00 in Minerva Neurosciences on September 2, 2024 and sell it today you would lose (102.00) from holding Minerva Neurosciences or give up 31.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Minerva Neurosciences
Performance |
| Timeline |
| Citigroup |
| Minerva Neurosciences |
Citigroup and Minerva Neurosciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Minerva Neurosciences
The main advantage of trading using opposite Citigroup and Minerva Neurosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Minerva Neurosciences 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 Minerva Neurosciences will offset losses from the drop in Minerva Neurosciences' long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Minerva Neurosciences vs. Reviva Pharmaceuticals Holdings | Minerva Neurosciences vs. Eyenovia | Minerva Neurosciences vs. Cognition Therapeutics | Minerva Neurosciences vs. Transcode Therapeutics |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |