Correlation Between Citigroup and Viva Entertainment
Can any of the company-specific risk be diversified away by investing in both Citigroup and Viva Entertainment 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 Viva Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Viva Entertainment Group, you can compare the effects of market volatilities on Citigroup and Viva Entertainment 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 Viva Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Viva Entertainment.
Diversification Opportunities for Citigroup and Viva Entertainment
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Citigroup and Viva is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Viva Entertainment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viva Entertainment 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 Viva Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Viva Entertainment has no effect on the direction of Citigroup i.e., Citigroup and Viva Entertainment go up and down completely randomly.
Pair Corralation between Citigroup and Viva Entertainment
If you would invest 0.09 in Viva Entertainment Group on September 25, 2024 and sell it today you would earn a total of 0.00 from holding Viva Entertainment Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
Citigroup vs. Viva Entertainment Group
Performance |
| Timeline |
| Citigroup |
| Viva Entertainment |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Viva Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Viva Entertainment
The main advantage of trading using opposite Citigroup and Viva Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Viva Entertainment 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 Viva Entertainment will offset losses from the drop in Viva Entertainment's long position.The idea behind Citigroup and Viva Entertainment Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Viva Entertainment vs. 36Kr Holdings | Viva Entertainment vs. Onfolio Holdings | Viva Entertainment vs. Yelp Inc | Viva Entertainment vs. Snap Inc |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |