Correlation Between Citigroup and Gasoline RBOB
Can any of the company-specific risk be diversified away by investing in both Citigroup and Gasoline RBOB 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 Gasoline RBOB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Gasoline RBOB, you can compare the effects of market volatilities on Citigroup and Gasoline RBOB 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 Gasoline RBOB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Gasoline RBOB.
Diversification Opportunities for Citigroup and Gasoline RBOB
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Citigroup and Gasoline is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Gasoline RBOB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gasoline RBOB 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 Gasoline RBOB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gasoline RBOB has no effect on the direction of Citigroup i.e., Citigroup and Gasoline RBOB go up and down completely randomly.
Pair Corralation between Citigroup and Gasoline RBOB
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.81 times more return on investment than Gasoline RBOB. However, Citigroup is 1.23 times less risky than Gasoline RBOB. It trades about 0.1 of its potential returns per unit of risk. Gasoline RBOB is currently generating about 0.0 per unit of risk. If you would invest 4,959 in Citigroup on August 25, 2024 and sell it today you would earn a total of 2,025 from holding Citigroup or generate 40.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.45% |
| Values | Daily Returns |
Citigroup vs. Gasoline RBOB
Performance |
| Timeline |
| Citigroup |
| Gasoline RBOB |
Citigroup and Gasoline RBOB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Gasoline RBOB
The main advantage of trading using opposite Citigroup and Gasoline RBOB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Gasoline RBOB 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 Gasoline RBOB will offset losses from the drop in Gasoline RBOB's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| Gasoline RBOB vs. Crude Oil | Gasoline RBOB vs. Aluminum Futures | Gasoline RBOB vs. Corn Futures | Gasoline RBOB vs. Silver Futures |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |