Correlation Between Citigroup and Ourinvest Jpp
Can any of the company-specific risk be diversified away by investing in both Citigroup and Ourinvest Jpp 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 Ourinvest Jpp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Ourinvest Jpp Fundo, you can compare the effects of market volatilities on Citigroup and Ourinvest Jpp 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 Ourinvest Jpp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Ourinvest Jpp.
Diversification Opportunities for Citigroup and Ourinvest Jpp
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Citigroup and Ourinvest is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Ourinvest Jpp Fundo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ourinvest Jpp Fundo 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 Ourinvest Jpp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ourinvest Jpp Fundo has no effect on the direction of Citigroup i.e., Citigroup and Ourinvest Jpp go up and down completely randomly.
Pair Corralation between Citigroup and Ourinvest Jpp
Taking into account the 90-day investment horizon Citigroup is expected to under-perform the Ourinvest Jpp. In addition to that, Citigroup is 1.34 times more volatile than Ourinvest Jpp Fundo. It trades about -0.08 of its total potential returns per unit of risk. Ourinvest Jpp Fundo is currently generating about 0.15 per unit of volatility. If you would invest 6,768 in Ourinvest Jpp Fundo on November 28, 2024 and sell it today you would earn a total of 272.00 from holding Ourinvest Jpp Fundo or generate 4.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Citigroup vs. Ourinvest Jpp Fundo
Performance |
| Timeline |
| Citigroup |
| Ourinvest Jpp Fundo |
Citigroup and Ourinvest Jpp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Ourinvest Jpp
The main advantage of trading using opposite Citigroup and Ourinvest Jpp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Ourinvest Jpp 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 Ourinvest Jpp will offset losses from the drop in Ourinvest Jpp's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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