Correlation Between Citigroup and Randon SA
Can any of the company-specific risk be diversified away by investing in both Citigroup and Randon SA 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 Randon SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Randon SA Implementos, you can compare the effects of market volatilities on Citigroup and Randon SA 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 Randon SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Randon SA.
Diversification Opportunities for Citigroup and Randon SA
Excellent diversification
The 3 months correlation between Citigroup and Randon is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Randon SA Implementos in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Randon SA Implementos 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 Randon SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Randon SA Implementos has no effect on the direction of Citigroup i.e., Citigroup and Randon SA go up and down completely randomly.
Pair Corralation between Citigroup and Randon SA
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.05 times less return on investment than Randon SA. But when comparing it to its historical volatility, Citigroup is 1.47 times less risky than Randon SA. It trades about 0.22 of its potential returns per unit of risk. Randon SA Implementos is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 746.00 in Randon SA Implementos on November 18, 2024 and sell it today you would earn a total of 108.00 from holding Randon SA Implementos or generate 14.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Citigroup vs. Randon SA Implementos
Performance |
| Timeline |
| Citigroup |
| Randon SA Implementos |
Citigroup and Randon SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Randon SA
The main advantage of trading using opposite Citigroup and Randon SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Randon SA 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 Randon SA will offset losses from the drop in Randon SA's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Randon SA vs. Marcopolo SA | Randon SA vs. Randon SA Implementos | Randon SA vs. Fras le SA | Randon SA vs. Indstrias Romi SA |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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