Correlation Between Citigroup and At Tahur
Can any of the company-specific risk be diversified away by investing in both Citigroup and At Tahur 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 At Tahur into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and At Tahur, you can compare the effects of market volatilities on Citigroup and At Tahur 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 At Tahur. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and At Tahur.
Diversification Opportunities for Citigroup and At Tahur
Very weak diversification
The 3 months correlation between Citigroup and PREMA is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and At Tahur in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on At Tahur 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 At Tahur. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of At Tahur has no effect on the direction of Citigroup i.e., Citigroup and At Tahur go up and down completely randomly.
Pair Corralation between Citigroup and At Tahur
Taking into account the 90-day investment horizon Citigroup is expected to under-perform the At Tahur. But the stock apears to be less risky and, when comparing its historical volatility, Citigroup is 4.53 times less risky than At Tahur. The stock trades about -0.08 of its potential returns per unit of risk. The At Tahur is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 2,585 in At Tahur on November 28, 2024 and sell it today you would earn a total of 323.00 from holding At Tahur or generate 12.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. At Tahur
Performance |
| Timeline |
| Citigroup |
| At Tahur |
Citigroup and At Tahur Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and At Tahur
The main advantage of trading using opposite Citigroup and At Tahur positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, At Tahur 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 At Tahur will offset losses from the drop in At Tahur's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| At Tahur vs. Engro Polymer Chemicals | At Tahur vs. Ittehad Chemicals | At Tahur vs. Wah Nobel Chemicals | At Tahur vs. JS Investments |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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