Correlation Between Citigroup and PICKN PAY
Can any of the company-specific risk be diversified away by investing in both Citigroup and PICKN PAY 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 PICKN PAY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and PICKN PAY STORES, you can compare the effects of market volatilities on Citigroup and PICKN PAY 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 PICKN PAY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and PICKN PAY.
Diversification Opportunities for Citigroup and PICKN PAY
Very weak diversification
The 3 months correlation between Citigroup and PICKN is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and PICKN PAY STORES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PICKN PAY STORES 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 PICKN PAY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PICKN PAY STORES has no effect on the direction of Citigroup i.e., Citigroup and PICKN PAY go up and down completely randomly.
Pair Corralation between Citigroup and PICKN PAY
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.97 times less return on investment than PICKN PAY. But when comparing it to its historical volatility, Citigroup is 2.02 times less risky than PICKN PAY. It trades about 0.07 of its potential returns per unit of risk. PICKN PAY STORES is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 121.00 in PICKN PAY STORES on August 29, 2024 and sell it today you would earn a total of 30.00 from holding PICKN PAY STORES or generate 24.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.67% |
| Values | Daily Returns |
Citigroup vs. PICKN PAY STORES
Performance |
| Timeline |
| Citigroup |
| PICKN PAY STORES |
Citigroup and PICKN PAY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and PICKN PAY
The main advantage of trading using opposite Citigroup and PICKN PAY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, PICKN PAY 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 PICKN PAY will offset losses from the drop in PICKN PAY's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| PICKN PAY vs. Apple Inc | PICKN PAY vs. Apple Inc | PICKN PAY vs. Superior Plus Corp | PICKN PAY vs. SIVERS SEMICONDUCTORS AB |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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