Correlation Between Citigroup and Propanc Biopharma
Can any of the company-specific risk be diversified away by investing in both Citigroup and Propanc Biopharma 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 Propanc Biopharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Propanc Biopharma, you can compare the effects of market volatilities on Citigroup and Propanc Biopharma 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 Propanc Biopharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Propanc Biopharma.
Diversification Opportunities for Citigroup and Propanc Biopharma
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and Propanc is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Propanc Biopharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Propanc Biopharma 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 Propanc Biopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Propanc Biopharma has no effect on the direction of Citigroup i.e., Citigroup and Propanc Biopharma go up and down completely randomly.
Pair Corralation between Citigroup and Propanc Biopharma
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.16 times more return on investment than Propanc Biopharma. However, Citigroup is 6.44 times less risky than Propanc Biopharma. It trades about 0.23 of its potential returns per unit of risk. Propanc Biopharma is currently generating about -0.03 per unit of risk. If you would invest 6,255 in Citigroup on August 24, 2024 and sell it today you would earn a total of 729.00 from holding Citigroup or generate 11.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Citigroup vs. Propanc Biopharma
Performance |
| Timeline |
| Citigroup |
| Propanc Biopharma |
Citigroup and Propanc Biopharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Propanc Biopharma
The main advantage of trading using opposite Citigroup and Propanc Biopharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Propanc Biopharma 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 Propanc Biopharma will offset losses from the drop in Propanc Biopharma's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Propanc Biopharma vs. Rezolute | Propanc Biopharma vs. Tempest Therapeutics | Propanc Biopharma vs. Forte Biosciences | Propanc Biopharma vs. Dyadic International |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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