Correlation Between Citigroup and Alpineome Property
Can any of the company-specific risk be diversified away by investing in both Citigroup and Alpineome Property 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 Alpineome Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Alpineome Property Trust, you can compare the effects of market volatilities on Citigroup and Alpineome Property 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 Alpineome Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Alpineome Property.
Diversification Opportunities for Citigroup and Alpineome Property
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and Alpineome is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Alpineome Property Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alpineome Property Trust 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 Alpineome Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alpineome Property Trust has no effect on the direction of Citigroup i.e., Citigroup and Alpineome Property go up and down completely randomly.
Pair Corralation between Citigroup and Alpineome Property
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.74 times more return on investment than Alpineome Property. However, Citigroup is 1.74 times more volatile than Alpineome Property Trust. It trades about 0.45 of its potential returns per unit of risk. Alpineome Property Trust is currently generating about 0.17 per unit of risk. If you would invest 6,842 in Citigroup on October 20, 2024 and sell it today you would earn a total of 1,157 from holding Citigroup or generate 16.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Alpineome Property Trust
Performance |
| Timeline |
| Citigroup |
| Alpineome Property Trust |
Citigroup and Alpineome Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Alpineome Property
The main advantage of trading using opposite Citigroup and Alpineome Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Alpineome Property 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 Alpineome Property will offset losses from the drop in Alpineome Property's long position.| Citigroup vs. Bank of Montreal | Citigroup vs. Canadian Imperial Bank | Citigroup vs. Bank of Nova | Citigroup vs. JPMorgan Chase Co |
| Alpineome Property vs. Rithm Property Trust | Alpineome Property vs. Kite Realty Group | Alpineome Property vs. Inventrust Properties Corp | Alpineome Property vs. Four Corners Property |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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