Correlation Between Citigroup and Public Company
Can any of the company-specific risk be diversified away by investing in both Citigroup and Public Company 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 Public Company into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Public Company Management, you can compare the effects of market volatilities on Citigroup and Public Company 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 Public Company. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Public Company.
Diversification Opportunities for Citigroup and Public Company
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and Public is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Public Company Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Public Management 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 Public Company. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Public Management has no effect on the direction of Citigroup i.e., Citigroup and Public Company go up and down completely randomly.
Pair Corralation between Citigroup and Public Company
If you would invest 6,980 in Citigroup on September 12, 2024 and sell it today you would earn a total of 270.00 from holding Citigroup or generate 3.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Public Company Management
Performance |
| Timeline |
| Citigroup |
| Public Management |
Citigroup and Public Company Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Public Company
The main advantage of trading using opposite Citigroup and Public Company positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Public Company 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 Public Company will offset losses from the drop in Public Company's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Public Company vs. HUMANA INC | Public Company vs. Barloworld Ltd ADR | Public Company vs. Morningstar Unconstrained Allocation | Public Company vs. Thrivent High Yield |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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