Correlation Between Citigroup and Oceantech Acquisitions
Can any of the company-specific risk be diversified away by investing in both Citigroup and Oceantech Acquisitions 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 Oceantech Acquisitions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Oceantech Acquisitions I, you can compare the effects of market volatilities on Citigroup and Oceantech Acquisitions 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 Oceantech Acquisitions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Oceantech Acquisitions.
Diversification Opportunities for Citigroup and Oceantech Acquisitions
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Citigroup and Oceantech is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Oceantech Acquisitions I in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oceantech Acquisitions 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 Oceantech Acquisitions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oceantech Acquisitions has no effect on the direction of Citigroup i.e., Citigroup and Oceantech Acquisitions go up and down completely randomly.
Pair Corralation between Citigroup and Oceantech Acquisitions
If you would invest 6,079 in Citigroup on September 1, 2024 and sell it today you would earn a total of 1,008 from holding Citigroup or generate 16.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 0.79% |
| Values | Daily Returns |
Citigroup vs. Oceantech Acquisitions I
Performance |
| Timeline |
| Citigroup |
| Oceantech Acquisitions |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Oceantech Acquisitions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Oceantech Acquisitions
The main advantage of trading using opposite Citigroup and Oceantech Acquisitions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Oceantech Acquisitions 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 Oceantech Acquisitions will offset losses from the drop in Oceantech Acquisitions' long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Oceantech Acquisitions vs. ATRenew Inc DRC | Oceantech Acquisitions vs. SunLink Health Systems | Oceantech Acquisitions vs. The Gap, | Oceantech Acquisitions vs. Getty Realty |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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