Correlation Between Citigroup and FiscalNote Holdings
Can any of the company-specific risk be diversified away by investing in both Citigroup and FiscalNote Holdings 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 FiscalNote Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and FiscalNote Holdings, you can compare the effects of market volatilities on Citigroup and FiscalNote Holdings 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 FiscalNote Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and FiscalNote Holdings.
Diversification Opportunities for Citigroup and FiscalNote Holdings
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and FiscalNote is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and FiscalNote Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FiscalNote Holdings 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 FiscalNote Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FiscalNote Holdings has no effect on the direction of Citigroup i.e., Citigroup and FiscalNote Holdings go up and down completely randomly.
Pair Corralation between Citigroup and FiscalNote Holdings
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.47 times more return on investment than FiscalNote Holdings. However, Citigroup is 2.14 times less risky than FiscalNote Holdings. It trades about 0.21 of its potential returns per unit of risk. FiscalNote Holdings is currently generating about -0.23 per unit of risk. If you would invest 6,255 in Citigroup on August 24, 2024 and sell it today you would earn a total of 640.00 from holding Citigroup or generate 10.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. FiscalNote Holdings
Performance |
| Timeline |
| Citigroup |
| FiscalNote Holdings |
Citigroup and FiscalNote Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and FiscalNote Holdings
The main advantage of trading using opposite Citigroup and FiscalNote Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, FiscalNote Holdings 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 FiscalNote Holdings will offset losses from the drop in FiscalNote Holdings' long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| FiscalNote Holdings vs. Concentrix | FiscalNote Holdings vs. Accenture plc | FiscalNote Holdings vs. International Business Machines | FiscalNote Holdings vs. Cognizant Technology Solutions |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |