Correlation Between Citigroup and Oberweis Emerging
Can any of the company-specific risk be diversified away by investing in both Citigroup and Oberweis Emerging 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 Oberweis Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Oberweis Emerging Markets, you can compare the effects of market volatilities on Citigroup and Oberweis Emerging 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 Oberweis Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Oberweis Emerging.
Diversification Opportunities for Citigroup and Oberweis Emerging
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Oberweis is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Oberweis Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oberweis Emerging Markets 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 Oberweis Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oberweis Emerging Markets has no effect on the direction of Citigroup i.e., Citigroup and Oberweis Emerging go up and down completely randomly.
Pair Corralation between Citigroup and Oberweis Emerging
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.16 times more return on investment than Oberweis Emerging. However, Citigroup is 1.16 times more volatile than Oberweis Emerging Markets. It trades about 0.08 of its potential returns per unit of risk. Oberweis Emerging Markets is currently generating about -0.02 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 Against |
| Strength | Weak |
| Accuracy | 98.12% |
| Values | Daily Returns |
Citigroup vs. Oberweis Emerging Markets
Performance |
| Timeline |
| Citigroup |
| Oberweis Emerging Markets |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Oberweis Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Oberweis Emerging
The main advantage of trading using opposite Citigroup and Oberweis Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Oberweis Emerging 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 Oberweis Emerging will offset losses from the drop in Oberweis Emerging's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Oberweis Emerging vs. Pimco Funds | Oberweis Emerging vs. Dreyfus Institutional Reserves | Oberweis Emerging vs. Cref Money Market | Oberweis Emerging vs. Jpmorgan Trust I |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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