Correlation Between Citigroup and Quotient Technology
Can any of the company-specific risk be diversified away by investing in both Citigroup and Quotient Technology 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 Quotient Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Quotient Technology, you can compare the effects of market volatilities on Citigroup and Quotient Technology 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 Quotient Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Quotient Technology.
Diversification Opportunities for Citigroup and Quotient Technology
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and Quotient is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Quotient Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quotient Technology 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 Quotient Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quotient Technology has no effect on the direction of Citigroup i.e., Citigroup and Quotient Technology go up and down completely randomly.
Pair Corralation between Citigroup and Quotient Technology
If you would invest 6,133 in Citigroup on August 28, 2024 and sell it today you would earn a total of 942.00 from holding Citigroup or generate 15.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 2.38% |
| Values | Daily Returns |
Citigroup vs. Quotient Technology
Performance |
| Timeline |
| Citigroup |
| Quotient Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Quotient Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Quotient Technology
The main advantage of trading using opposite Citigroup and Quotient Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Quotient Technology 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 Quotient Technology will offset losses from the drop in Quotient Technology's long position.| Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal | Citigroup vs. Bank of Nova |
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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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