Correlation Between Citigroup and Phoslock Environmental
Can any of the company-specific risk be diversified away by investing in both Citigroup and Phoslock Environmental 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 Phoslock Environmental into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Phoslock Environmental Technologies, you can compare the effects of market volatilities on Citigroup and Phoslock Environmental 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 Phoslock Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Phoslock Environmental.
Diversification Opportunities for Citigroup and Phoslock Environmental
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Phoslock is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Phoslock Environmental Technol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phoslock Environmental 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 Phoslock Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phoslock Environmental has no effect on the direction of Citigroup i.e., Citigroup and Phoslock Environmental go up and down completely randomly.
Pair Corralation between Citigroup and Phoslock Environmental
If you would invest 6,360 in Citigroup on August 29, 2024 and sell it today you would earn a total of 615.00 from holding Citigroup or generate 9.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Citigroup vs. Phoslock Environmental Technol
Performance |
| Timeline |
| Citigroup |
| Phoslock Environmental |
Citigroup and Phoslock Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Phoslock Environmental
The main advantage of trading using opposite Citigroup and Phoslock Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Phoslock Environmental 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 Phoslock Environmental will offset losses from the drop in Phoslock Environmental's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Phoslock Environmental vs. Aneka Tambang Tbk | Phoslock Environmental vs. ANZ Group Holdings | Phoslock Environmental vs. Australia and New | Phoslock Environmental vs. Commonwealth Bank |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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