Correlation Between Citigroup and Polyplex Public
Can any of the company-specific risk be diversified away by investing in both Citigroup and Polyplex Public 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 Polyplex Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Polyplex Public, you can compare the effects of market volatilities on Citigroup and Polyplex Public 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 Polyplex Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Polyplex Public.
Diversification Opportunities for Citigroup and Polyplex Public
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Citigroup and Polyplex is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Polyplex Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polyplex Public 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 Polyplex Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polyplex Public has no effect on the direction of Citigroup i.e., Citigroup and Polyplex Public go up and down completely randomly.
Pair Corralation between Citigroup and Polyplex Public
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.61 times more return on investment than Polyplex Public. However, Citigroup is 1.64 times less risky than Polyplex Public. It trades about 0.07 of its potential returns per unit of risk. Polyplex Public is currently generating about -0.03 per unit of risk. If you would invest 4,218 in Citigroup on September 1, 2024 and sell it today you would earn a total of 2,869 from holding Citigroup or generate 68.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.58% |
| Values | Daily Returns |
Citigroup vs. Polyplex Public
Performance |
| Timeline |
| Citigroup |
| Polyplex Public |
Citigroup and Polyplex Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Polyplex Public
The main advantage of trading using opposite Citigroup and Polyplex Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Polyplex Public 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 Polyplex Public will offset losses from the drop in Polyplex Public's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Polyplex Public vs. AAPICO Hitech Public | Polyplex Public vs. AP Public | Polyplex Public vs. Aikchol Hospital Public | Polyplex Public vs. Bank of Ayudhya |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |