Correlation Between Citigroup and Puregold Price
Can any of the company-specific risk be diversified away by investing in both Citigroup and Puregold Price 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 Puregold Price into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Puregold Price Club, you can compare the effects of market volatilities on Citigroup and Puregold Price 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 Puregold Price. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Puregold Price.
Diversification Opportunities for Citigroup and Puregold Price
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Citigroup and Puregold is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Puregold Price Club in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Puregold Price Club 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 Puregold Price. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Puregold Price Club has no effect on the direction of Citigroup i.e., Citigroup and Puregold Price go up and down completely randomly.
Pair Corralation between Citigroup and Puregold Price
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.99 times more return on investment than Puregold Price. However, Citigroup is 1.01 times less risky than Puregold Price. It trades about 0.21 of its potential returns per unit of risk. Puregold Price Club is currently generating about -0.06 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 Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Citigroup vs. Puregold Price Club
Performance |
| Timeline |
| Citigroup |
| Puregold Price Club |
Citigroup and Puregold Price Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Puregold Price
The main advantage of trading using opposite Citigroup and Puregold Price positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Puregold Price 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 Puregold Price will offset losses from the drop in Puregold Price's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Puregold Price vs. Cosco Capital | Puregold Price vs. Keepers Holdings | Puregold Price vs. AllDay Marts | Puregold Price vs. GT Capital Holdings |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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