Correlation Between Citigroup and QT Imaging
Can any of the company-specific risk be diversified away by investing in both Citigroup and QT Imaging 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 Imaging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and QT Imaging Holdings, you can compare the effects of market volatilities on Citigroup and QT Imaging 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 Imaging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and QT Imaging.
Diversification Opportunities for Citigroup and QT Imaging
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Citigroup and QTI is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and QT Imaging Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QT Imaging Holdings 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 Imaging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QT Imaging Holdings has no effect on the direction of Citigroup i.e., Citigroup and QT Imaging go up and down completely randomly.
Pair Corralation between Citigroup and QT Imaging
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.3 times more return on investment than QT Imaging. However, Citigroup is 3.28 times less risky than QT Imaging. It trades about 0.15 of its potential returns per unit of risk. QT Imaging Holdings is currently generating about -0.1 per unit of risk. If you would invest 6,205 in Citigroup on August 31, 2024 and sell it today you would earn a total of 811.00 from holding Citigroup or generate 13.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. QT Imaging Holdings
Performance |
| Timeline |
| Citigroup |
| QT Imaging Holdings |
Citigroup and QT Imaging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and QT Imaging
The main advantage of trading using opposite Citigroup and QT Imaging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, QT Imaging 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 Imaging will offset losses from the drop in QT Imaging's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| QT Imaging vs. Teleflex Incorporated | QT Imaging vs. QBE Insurance Group | QT Imaging vs. Cincinnati Financial | QT Imaging vs. Maiden Holdings |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |