Correlation Between Citigroup and Play2Chill
Can any of the company-specific risk be diversified away by investing in both Citigroup and Play2Chill 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 Play2Chill into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Play2Chill SA, you can compare the effects of market volatilities on Citigroup and Play2Chill 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 Play2Chill. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Play2Chill.
Diversification Opportunities for Citigroup and Play2Chill
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Citigroup and Play2Chill is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Play2Chill SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Play2Chill SA 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 Play2Chill. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Play2Chill SA has no effect on the direction of Citigroup i.e., Citigroup and Play2Chill go up and down completely randomly.
Pair Corralation between Citigroup and Play2Chill
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.64 times more return on investment than Play2Chill. However, Citigroup is 1.56 times less risky than Play2Chill. It trades about 0.21 of its potential returns per unit of risk. Play2Chill SA is currently generating about 0.13 per unit of risk. If you would invest 6,393 in Citigroup on August 31, 2024 and sell it today you would earn a total of 623.00 from holding Citigroup or generate 9.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 86.36% |
| Values | Daily Returns |
Citigroup vs. Play2Chill SA
Performance |
| Timeline |
| Citigroup |
| Play2Chill SA |
Citigroup and Play2Chill Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Play2Chill
The main advantage of trading using opposite Citigroup and Play2Chill positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Play2Chill 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 Play2Chill will offset losses from the drop in Play2Chill's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Play2Chill vs. Asseco Business Solutions | Play2Chill vs. Detalion Games SA | Play2Chill vs. Asseco South Eastern | Play2Chill vs. CFI Holding SA |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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