Correlation Between Citigroup and Oculis Holding
Can any of the company-specific risk be diversified away by investing in both Citigroup and Oculis Holding 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 Oculis Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Oculis Holding AG, you can compare the effects of market volatilities on Citigroup and Oculis Holding 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 Oculis Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Oculis Holding.
Diversification Opportunities for Citigroup and Oculis Holding
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and Oculis is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Oculis Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oculis Holding AG 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 Oculis Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oculis Holding AG has no effect on the direction of Citigroup i.e., Citigroup and Oculis Holding go up and down completely randomly.
Pair Corralation between Citigroup and Oculis Holding
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.91 times less return on investment than Oculis Holding. But when comparing it to its historical volatility, Citigroup is 1.54 times less risky than Oculis Holding. It trades about 0.19 of its potential returns per unit of risk. Oculis Holding AG is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 165,000 in Oculis Holding AG on September 3, 2024 and sell it today you would earn a total of 57,000 from holding Oculis Holding AG or generate 34.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.67% |
| Values | Daily Returns |
Citigroup vs. Oculis Holding AG
Performance |
| Timeline |
| Citigroup |
| Oculis Holding AG |
Citigroup and Oculis Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Oculis Holding
The main advantage of trading using opposite Citigroup and Oculis Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Oculis Holding 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 Oculis Holding will offset losses from the drop in Oculis Holding's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
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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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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