Correlation Between Citigroup and Oak Ridge
Can any of the company-specific risk be diversified away by investing in both Citigroup and Oak Ridge 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 Oak Ridge into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Oak Ridge Small, you can compare the effects of market volatilities on Citigroup and Oak Ridge 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 Oak Ridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Oak Ridge.
Diversification Opportunities for Citigroup and Oak Ridge
Almost no diversification
The 3 months correlation between Citigroup and OAK is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Oak Ridge Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oak Ridge Small 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 Oak Ridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oak Ridge Small has no effect on the direction of Citigroup i.e., Citigroup and Oak Ridge go up and down completely randomly.
Pair Corralation between Citigroup and Oak Ridge
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.37 times more return on investment than Oak Ridge. However, Citigroup is 1.37 times more volatile than Oak Ridge Small. It trades about 0.08 of its potential returns per unit of risk. Oak Ridge Small is currently generating about 0.11 per unit of risk. If you would invest 5,415 in Citigroup on August 28, 2024 and sell it today you would earn a total of 1,660 from holding Citigroup or generate 30.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.52% |
| Values | Daily Returns |
Citigroup vs. Oak Ridge Small
Performance |
| Timeline |
| Citigroup |
| Oak Ridge Small |
Citigroup and Oak Ridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Oak Ridge
The main advantage of trading using opposite Citigroup and Oak Ridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Oak Ridge 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 Oak Ridge will offset losses from the drop in Oak Ridge's long position.| Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal | Citigroup vs. Bank of Nova |
| Oak Ridge vs. North Square Investments | Oak Ridge vs. Advisory Research Strategic | Oak Ridge vs. Api Efficient Frontier | Oak Ridge vs. Oak Ridge Multi |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |