Correlation Between Citigroup and Ondine Biomedical
Can any of the company-specific risk be diversified away by investing in both Citigroup and Ondine Biomedical 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 Ondine Biomedical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Ondine Biomedical, you can compare the effects of market volatilities on Citigroup and Ondine Biomedical 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 Ondine Biomedical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Ondine Biomedical.
Diversification Opportunities for Citigroup and Ondine Biomedical
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and Ondine is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Ondine Biomedical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ondine Biomedical 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 Ondine Biomedical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ondine Biomedical has no effect on the direction of Citigroup i.e., Citigroup and Ondine Biomedical go up and down completely randomly.
Pair Corralation between Citigroup and Ondine Biomedical
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.29 times more return on investment than Ondine Biomedical. However, Citigroup is 3.39 times less risky than Ondine Biomedical. It trades about 0.08 of its potential returns per unit of risk. Ondine Biomedical is currently generating about -0.01 per unit of risk. If you would invest 4,558 in Citigroup on September 2, 2024 and sell it today you would earn a total of 2,529 from holding Citigroup or generate 55.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.67% |
| Values | Daily Returns |
Citigroup vs. Ondine Biomedical
Performance |
| Timeline |
| Citigroup |
| Ondine Biomedical |
Citigroup and Ondine Biomedical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Ondine Biomedical
The main advantage of trading using opposite Citigroup and Ondine Biomedical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Ondine Biomedical 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 Ondine Biomedical will offset losses from the drop in Ondine Biomedical's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Ondine Biomedical vs. Samsung Electronics Co | Ondine Biomedical vs. Samsung Electronics Co | Ondine Biomedical vs. Hyundai Motor | Ondine Biomedical vs. Toyota Motor 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |