Correlation Between Citigroup and Belpointe PREP
Can any of the company-specific risk be diversified away by investing in both Citigroup and Belpointe PREP 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 Belpointe PREP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Belpointe PREP LLC, you can compare the effects of market volatilities on Citigroup and Belpointe PREP 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 Belpointe PREP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Belpointe PREP.
Diversification Opportunities for Citigroup and Belpointe PREP
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Citigroup and Belpointe is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Belpointe PREP LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Belpointe PREP LLC 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 Belpointe PREP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Belpointe PREP LLC has no effect on the direction of Citigroup i.e., Citigroup and Belpointe PREP go up and down completely randomly.
Pair Corralation between Citigroup and Belpointe PREP
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.79 times more return on investment than Belpointe PREP. However, Citigroup is 1.79 times more volatile than Belpointe PREP LLC. It trades about 0.23 of its potential returns per unit of risk. Belpointe PREP LLC is currently generating about 0.33 per unit of risk. If you would invest 6,360 in Citigroup on August 27, 2024 and sell it today you would earn a total of 624.00 from holding Citigroup or generate 9.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Belpointe PREP LLC
Performance |
| Timeline |
| Citigroup |
| Belpointe PREP LLC |
Citigroup and Belpointe PREP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Belpointe PREP
The main advantage of trading using opposite Citigroup and Belpointe PREP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Belpointe PREP 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 Belpointe PREP will offset losses from the drop in Belpointe PREP's long position.| Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal | Citigroup vs. Bank of Nova |
| Belpointe PREP vs. Sun Hung Kai | Belpointe PREP vs. Bayport International Holdings | Belpointe PREP vs. Landsea Homes Corp | Belpointe PREP vs. American Realty Investors |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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