Correlation Between Citigroup and Paninvest Tbk
Can any of the company-specific risk be diversified away by investing in both Citigroup and Paninvest Tbk 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 Paninvest Tbk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Paninvest Tbk, you can compare the effects of market volatilities on Citigroup and Paninvest Tbk 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 Paninvest Tbk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Paninvest Tbk.
Diversification Opportunities for Citigroup and Paninvest Tbk
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and Paninvest is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Paninvest Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Paninvest Tbk 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 Paninvest Tbk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Paninvest Tbk has no effect on the direction of Citigroup i.e., Citigroup and Paninvest Tbk go up and down completely randomly.
Pair Corralation between Citigroup and Paninvest Tbk
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.71 times more return on investment than Paninvest Tbk. However, Citigroup is 1.4 times less risky than Paninvest Tbk. It trades about 0.07 of its potential returns per unit of risk. Paninvest Tbk is currently generating about -0.01 per unit of risk. If you would invest 4,206 in Citigroup on August 24, 2024 and sell it today you would earn a total of 2,689 from holding Citigroup or generate 63.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.77% |
| Values | Daily Returns |
Citigroup vs. Paninvest Tbk
Performance |
| Timeline |
| Citigroup |
| Paninvest Tbk |
Citigroup and Paninvest Tbk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Paninvest Tbk
The main advantage of trading using opposite Citigroup and Paninvest Tbk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Paninvest Tbk 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 Paninvest Tbk will offset losses from the drop in Paninvest Tbk's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Paninvest Tbk vs. Panin Financial Tbk | Paninvest Tbk vs. Bank Pan Indonesia | Paninvest Tbk vs. Panin Sekuritas Tbk | Paninvest Tbk vs. Clipan Finance Indonesia |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |