Correlation Between Citigroup and Priveterra Acquisition
Can any of the company-specific risk be diversified away by investing in both Citigroup and Priveterra Acquisition 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 Priveterra Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Priveterra Acquisition Corp, you can compare the effects of market volatilities on Citigroup and Priveterra Acquisition 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 Priveterra Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Priveterra Acquisition.
Diversification Opportunities for Citigroup and Priveterra Acquisition
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Citigroup and Priveterra is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Priveterra Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Priveterra Acquisition 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 Priveterra Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Priveterra Acquisition has no effect on the direction of Citigroup i.e., Citigroup and Priveterra Acquisition go up and down completely randomly.
Pair Corralation between Citigroup and Priveterra Acquisition
If you would invest 6,412 in Citigroup on August 30, 2024 and sell it today you would earn a total of 604.00 from holding Citigroup or generate 9.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Citigroup vs. Priveterra Acquisition Corp
Performance |
| Timeline |
| Citigroup |
| Priveterra Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Priveterra Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Priveterra Acquisition
The main advantage of trading using opposite Citigroup and Priveterra Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Priveterra Acquisition 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 Priveterra Acquisition will offset losses from the drop in Priveterra Acquisition's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu 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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