Correlation Between Citigroup and PING
Can any of the company-specific risk be diversified away by investing in both Citigroup and PING 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 PING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and PING, you can compare the effects of market volatilities on Citigroup and PING 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 PING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and PING.
Diversification Opportunities for Citigroup and PING
Very weak diversification
The 3 months correlation between Citigroup and PING is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and PING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PING 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 PING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PING has no effect on the direction of Citigroup i.e., Citigroup and PING go up and down completely randomly.
Pair Corralation between Citigroup and PING
If you would invest 6,122 in Citigroup on August 26, 2024 and sell it today you would earn a total of 862.00 from holding Citigroup or generate 14.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Citigroup vs. PING
Performance |
| Timeline |
| Citigroup |
| PING |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and PING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and PING
The main advantage of trading using opposite Citigroup and PING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, PING 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 PING will offset losses from the drop in PING's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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