Correlation Between Citigroup and Oppenheimer Global
Can any of the company-specific risk be diversified away by investing in both Citigroup and Oppenheimer Global 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 Oppenheimer Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Oppenheimer Global Multi Asset, you can compare the effects of market volatilities on Citigroup and Oppenheimer Global 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 Oppenheimer Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Oppenheimer Global.
Diversification Opportunities for Citigroup and Oppenheimer Global
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and Oppenheimer is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Oppenheimer Global Multi Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Global 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 Oppenheimer Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Global has no effect on the direction of Citigroup i.e., Citigroup and Oppenheimer Global go up and down completely randomly.
Pair Corralation between Citigroup and Oppenheimer Global
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.71 times more return on investment than Oppenheimer Global. However, Citigroup is 2.71 times more volatile than Oppenheimer Global Multi Asset. It trades about 0.32 of its potential returns per unit of risk. Oppenheimer Global Multi Asset is currently generating about -0.08 per unit of risk. If you would invest 6,235 in Citigroup on September 3, 2024 and sell it today you would earn a total of 852.00 from holding Citigroup or generate 13.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Oppenheimer Global Multi Asset
Performance |
| Timeline |
| Citigroup |
| Oppenheimer Global |
Citigroup and Oppenheimer Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Oppenheimer Global
The main advantage of trading using opposite Citigroup and Oppenheimer Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Oppenheimer Global 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 Oppenheimer Global will offset losses from the drop in Oppenheimer Global's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Oppenheimer Global vs. Columbia Real Estate | Oppenheimer Global vs. Dunham Real Estate | Oppenheimer Global vs. Goldman Sachs Real | Oppenheimer Global vs. Franklin Real Estate |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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