Correlation Between Citigroup and Oscar Health
Can any of the company-specific risk be diversified away by investing in both Citigroup and Oscar Health 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 Oscar Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Oscar Health, you can compare the effects of market volatilities on Citigroup and Oscar Health 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 Oscar Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Oscar Health.
Diversification Opportunities for Citigroup and Oscar Health
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Citigroup and Oscar is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Oscar Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oscar Health 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 Oscar Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oscar Health has no effect on the direction of Citigroup i.e., Citigroup and Oscar Health go up and down completely randomly.
Pair Corralation between Citigroup and Oscar Health
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.7 times less return on investment than Oscar Health. But when comparing it to its historical volatility, Citigroup is 2.68 times less risky than Oscar Health. It trades about 0.08 of its potential returns per unit of risk. Oscar Health is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,252 in Oscar Health on August 28, 2024 and sell it today you would earn a total of 433.00 from holding Oscar Health or generate 34.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Oscar Health
Performance |
| Timeline |
| Citigroup |
| Oscar Health |
Citigroup and Oscar Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Oscar Health
The main advantage of trading using opposite Citigroup and Oscar Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Oscar Health 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 Oscar Health will offset losses from the drop in Oscar Health's long position.| Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal | Citigroup vs. Bank of Nova |
| Oscar Health vs. Molina Healthcare | Oscar Health vs. Centene Corp | Oscar Health vs. Elevance Health | Oscar Health vs. Clover Health Investments |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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