Correlation Between Citigroup and Ocuphire Pharma
Can any of the company-specific risk be diversified away by investing in both Citigroup and Ocuphire Pharma 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 Ocuphire Pharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Ocuphire Pharma, you can compare the effects of market volatilities on Citigroup and Ocuphire Pharma 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 Ocuphire Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Ocuphire Pharma.
Diversification Opportunities for Citigroup and Ocuphire Pharma
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Citigroup and Ocuphire is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Ocuphire Pharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ocuphire Pharma 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 Ocuphire Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ocuphire Pharma has no effect on the direction of Citigroup i.e., Citigroup and Ocuphire Pharma go up and down completely randomly.
Pair Corralation between Citigroup and Ocuphire Pharma
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.36 times more return on investment than Ocuphire Pharma. However, Citigroup is 2.77 times less risky than Ocuphire Pharma. It trades about 0.24 of its potential returns per unit of risk. Ocuphire Pharma is currently generating about -0.58 per unit of risk. If you would invest 6,245 in Citigroup on August 25, 2024 and sell it today you would earn a total of 739.00 from holding Citigroup or generate 11.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 13.64% |
| Values | Daily Returns |
Citigroup vs. Ocuphire Pharma
Performance |
| Timeline |
| Citigroup |
| Ocuphire Pharma |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Ocuphire Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Ocuphire Pharma
The main advantage of trading using opposite Citigroup and Ocuphire Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Ocuphire Pharma 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 Ocuphire Pharma will offset losses from the drop in Ocuphire Pharma's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Royal Bank of | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC |
| Ocuphire Pharma vs. Reviva Pharmaceuticals Holdings | Ocuphire Pharma vs. Protalix Biotherapeutics | Ocuphire Pharma vs. Eyepoint Pharmaceuticals | Ocuphire Pharma vs. Sellas Life Sciences |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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