Correlation Between Citigroup and Pakistan Gum
Can any of the company-specific risk be diversified away by investing in both Citigroup and Pakistan Gum 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 Pakistan Gum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Pakistan Gum And, you can compare the effects of market volatilities on Citigroup and Pakistan Gum 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 Pakistan Gum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Pakistan Gum.
Diversification Opportunities for Citigroup and Pakistan Gum
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Pakistan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Pakistan Gum And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pakistan Gum And 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 Pakistan Gum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pakistan Gum And has no effect on the direction of Citigroup i.e., Citigroup and Pakistan Gum go up and down completely randomly.
Pair Corralation between Citigroup and Pakistan Gum
If you would invest 6,889 in Citigroup on September 14, 2024 and sell it today you would earn a total of 307.00 from holding Citigroup or generate 4.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Citigroup vs. Pakistan Gum And
Performance |
| Timeline |
| Citigroup |
| Pakistan Gum And |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Pakistan Gum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Pakistan Gum
The main advantage of trading using opposite Citigroup and Pakistan Gum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Pakistan Gum 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 Pakistan Gum will offset losses from the drop in Pakistan Gum's long position.The idea behind Citigroup and Pakistan Gum And pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Pakistan Gum vs. Aisha Steel Mills | Pakistan Gum vs. Allied Bank | Pakistan Gum vs. EFU General Insurance | Pakistan Gum vs. Adamjee Insurance |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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