Correlation Between Citigroup and Patten Energy
Can any of the company-specific risk be diversified away by investing in both Citigroup and Patten Energy 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 Patten Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Patten Energy Solutions, you can compare the effects of market volatilities on Citigroup and Patten Energy 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 Patten Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Patten Energy.
Diversification Opportunities for Citigroup and Patten Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Patten is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Patten Energy Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Patten Energy Solutions 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 Patten Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Patten Energy Solutions has no effect on the direction of Citigroup i.e., Citigroup and Patten Energy go up and down completely randomly.
Pair Corralation between Citigroup and Patten Energy
If you would invest 5,401 in Citigroup on August 27, 2024 and sell it today you would earn a total of 1,583 from holding Citigroup or generate 29.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.47% |
| Values | Daily Returns |
Citigroup vs. Patten Energy Solutions
Performance |
| Timeline |
| Citigroup |
| Patten Energy Solutions |
Citigroup and Patten Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Patten Energy
The main advantage of trading using opposite Citigroup and Patten Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Patten Energy 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 Patten Energy will offset losses from the drop in Patten Energy's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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