Correlation Between Citigroup and Pluristem
Can any of the company-specific risk be diversified away by investing in both Citigroup and Pluristem 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 Pluristem into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Pluristem, you can compare the effects of market volatilities on Citigroup and Pluristem 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 Pluristem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Pluristem.
Diversification Opportunities for Citigroup and Pluristem
Very good diversification
The 3 months correlation between Citigroup and Pluristem is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Pluristem in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pluristem 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 Pluristem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pluristem has no effect on the direction of Citigroup i.e., Citigroup and Pluristem go up and down completely randomly.
Pair Corralation between Citigroup and Pluristem
Taking into account the 90-day investment horizon Citigroup is expected to generate 21.73 times less return on investment than Pluristem. But when comparing it to its historical volatility, Citigroup is 31.12 times less risky than Pluristem. It trades about 0.11 of its potential returns per unit of risk. Pluristem is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 21,390 in Pluristem on September 2, 2024 and sell it today you would earn a total of 179,610 from holding Pluristem or generate 839.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 76.21% |
| Values | Daily Returns |
Citigroup vs. Pluristem
Performance |
| Timeline |
| Citigroup |
| Pluristem |
Citigroup and Pluristem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Pluristem
The main advantage of trading using opposite Citigroup and Pluristem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Pluristem 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 Pluristem will offset losses from the drop in Pluristem's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Pluristem vs. Hiron Trade Investments Industrial | Pluristem vs. Petrochemical | Pluristem vs. Feat Fund Investments | Pluristem vs. Rapac Communication Infrastructure |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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