Correlation Between Citigroup and Positive Physicians
Can any of the company-specific risk be diversified away by investing in both Citigroup and Positive Physicians 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 Positive Physicians into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Positive Physicians Holdings, you can compare the effects of market volatilities on Citigroup and Positive Physicians 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 Positive Physicians. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Positive Physicians.
Diversification Opportunities for Citigroup and Positive Physicians
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and Positive is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Positive Physicians Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Positive Physicians 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 Positive Physicians. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Positive Physicians has no effect on the direction of Citigroup i.e., Citigroup and Positive Physicians go up and down completely randomly.
Pair Corralation between Citigroup and Positive Physicians
If you would invest 6,255 in Citigroup on August 24, 2024 and sell it today you would earn a total of 640.00 from holding Citigroup or generate 10.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Citigroup vs. Positive Physicians Holdings
Performance |
| Timeline |
| Citigroup |
| Positive Physicians |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Positive Physicians Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Positive Physicians
The main advantage of trading using opposite Citigroup and Positive Physicians positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Positive Physicians 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 Positive Physicians will offset losses from the drop in Positive Physicians' long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Positive Physicians vs. Ambac Financial Group | Positive Physicians vs. AMERISAFE | Positive Physicians vs. Assured Guaranty | Positive Physicians vs. Essent Group |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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