Correlation Between Citigroup and Olivers Real
Can any of the company-specific risk be diversified away by investing in both Citigroup and Olivers Real 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 Olivers Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Olivers Real Food, you can compare the effects of market volatilities on Citigroup and Olivers Real 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 Olivers Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Olivers Real.
Diversification Opportunities for Citigroup and Olivers Real
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Citigroup and Olivers is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Olivers Real Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Olivers Real Food 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 Olivers Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Olivers Real Food has no effect on the direction of Citigroup i.e., Citigroup and Olivers Real go up and down completely randomly.
Pair Corralation between Citigroup and Olivers Real
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.34 times more return on investment than Olivers Real. However, Citigroup is 2.92 times less risky than Olivers Real. It trades about 0.27 of its potential returns per unit of risk. Olivers Real Food is currently generating about -0.18 per unit of risk. If you would invest 6,315 in Citigroup on September 2, 2024 and sell it today you would earn a total of 772.00 from holding Citigroup or generate 12.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Citigroup vs. Olivers Real Food
Performance |
| Timeline |
| Citigroup |
| Olivers Real Food |
Citigroup and Olivers Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Olivers Real
The main advantage of trading using opposite Citigroup and Olivers Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Olivers Real 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 Olivers Real will offset losses from the drop in Olivers Real'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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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