Correlation Between Citigroup and ICEX Main
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By analyzing existing cross correlation between Citigroup and ICEX Main, you can compare the effects of market volatilities on Citigroup and ICEX Main 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 ICEX Main. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and ICEX Main.
Diversification Opportunities for Citigroup and ICEX Main
Poor diversification
The 3 months correlation between Citigroup and ICEX is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and ICEX Main in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ICEX Main 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 ICEX Main. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ICEX Main has no effect on the direction of Citigroup i.e., Citigroup and ICEX Main go up and down completely randomly.
Pair Corralation between Citigroup and ICEX Main
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.71 times more return on investment than ICEX Main. However, Citigroup is 1.71 times more volatile than ICEX Main. It trades about 0.12 of its potential returns per unit of risk. ICEX Main is currently generating about 0.03 per unit of risk. If you would invest 4,004 in Citigroup on September 12, 2024 and sell it today you would earn a total of 3,200 from holding Citigroup or generate 79.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. ICEX Main
Performance |
| Timeline |
Citigroup and ICEX Main Volatility Contrast
Predicted Return Density |
| Returns |
Citigroup
Pair trading matchups for Citigroup
ICEX Main
Pair trading matchups for ICEX Main
Pair Trading with Citigroup and ICEX Main
The main advantage of trading using opposite Citigroup and ICEX Main positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, ICEX Main 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 ICEX Main will offset losses from the drop in ICEX Main's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| ICEX Main vs. Icelandair Group hf | ICEX Main vs. Arion banki hf | ICEX Main vs. slandsbanki hf | ICEX Main vs. Alvotech |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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