Correlation Between Citigroup and OMDA Oil
Can any of the company-specific risk be diversified away by investing in both Citigroup and OMDA Oil 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 OMDA Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and OMDA Oil and, you can compare the effects of market volatilities on Citigroup and OMDA Oil 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 OMDA Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and OMDA Oil.
Diversification Opportunities for Citigroup and OMDA Oil
Pay attention - limited upside
The 3 months correlation between Citigroup and OMDA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and OMDA Oil and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OMDA Oil 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 OMDA Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OMDA Oil has no effect on the direction of Citigroup i.e., Citigroup and OMDA Oil go up and down completely randomly.
Pair Corralation between Citigroup and OMDA Oil
If you would invest 6,360 in Citigroup on August 27, 2024 and sell it today you would earn a total of 715.00 from holding Citigroup or generate 11.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. OMDA Oil and
Performance |
| Timeline |
| Citigroup |
| OMDA Oil |
Citigroup and OMDA Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and OMDA Oil
The main advantage of trading using opposite Citigroup and OMDA Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, OMDA Oil 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 OMDA Oil will offset losses from the drop in OMDA Oil's long position.| Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal | Citigroup vs. Bank of Nova |
| OMDA Oil vs. Devon Energy | OMDA Oil vs. ConocoPhillips | OMDA Oil vs. Occidental Petroleum | OMDA Oil vs. Permian Resources |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |