Correlation Between Citigroup and Qt Group
Can any of the company-specific risk be diversified away by investing in both Citigroup and Qt Group 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 Qt Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Qt Group Oyj, you can compare the effects of market volatilities on Citigroup and Qt Group 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 Qt Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Qt Group.
Diversification Opportunities for Citigroup and Qt Group
Weak diversification
The 3 months correlation between Citigroup and QTCOM is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Qt Group Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qt Group Oyj 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 Qt Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qt Group Oyj has no effect on the direction of Citigroup i.e., Citigroup and Qt Group go up and down completely randomly.
Pair Corralation between Citigroup and Qt Group
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.8 times more return on investment than Qt Group. However, Citigroup is 1.26 times less risky than Qt Group. It trades about 0.41 of its potential returns per unit of risk. Qt Group Oyj is currently generating about 0.24 per unit of risk. If you would invest 6,994 in Citigroup on November 3, 2024 and sell it today you would earn a total of 1,149 from holding Citigroup or generate 16.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Citigroup vs. Qt Group Oyj
Performance |
| Timeline |
| Citigroup |
| Qt Group Oyj |
Citigroup and Qt Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Qt Group
The main advantage of trading using opposite Citigroup and Qt Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Qt Group 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 Qt Group will offset losses from the drop in Qt Group's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Qt Group vs. Harvia Oyj | Qt Group vs. Sampo Oyj A | Qt Group vs. Revenio Group | Qt Group vs. Kamux Suomi Oy |
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.
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