Correlation Between Citigroup and Pure Bioscience
Can any of the company-specific risk be diversified away by investing in both Citigroup and Pure Bioscience 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 Pure Bioscience into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Pure Bioscience, you can compare the effects of market volatilities on Citigroup and Pure Bioscience 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 Pure Bioscience. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Pure Bioscience.
Diversification Opportunities for Citigroup and Pure Bioscience
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and Pure is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Pure Bioscience in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pure Bioscience 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 Pure Bioscience. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pure Bioscience has no effect on the direction of Citigroup i.e., Citigroup and Pure Bioscience go up and down completely randomly.
Pair Corralation between Citigroup and Pure Bioscience
If you would invest 6,315 in Citigroup on September 2, 2024 and sell it today you would earn a total of 772.00 from holding Citigroup or generate 12.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Citigroup vs. Pure Bioscience
Performance |
| Timeline |
| Citigroup |
| Pure Bioscience |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Pure Bioscience Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Pure Bioscience
The main advantage of trading using opposite Citigroup and Pure Bioscience positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Pure Bioscience 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 Pure Bioscience will offset losses from the drop in Pure Bioscience's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Pure Bioscience vs. Kimberly Clark | Pure Bioscience vs. Colgate Palmolive | Pure Bioscience vs. Unilever PLC ADR | Pure Bioscience vs. Estee Lauder Companies |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |