Correlation Between Citigroup and Roscan Gold
Can any of the company-specific risk be diversified away by investing in both Citigroup and Roscan Gold 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 Roscan Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Roscan Gold Corp, you can compare the effects of market volatilities on Citigroup and Roscan Gold 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 Roscan Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Roscan Gold.
Diversification Opportunities for Citigroup and Roscan Gold
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Citigroup and Roscan is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Roscan Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Roscan Gold Corp 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 Roscan Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Roscan Gold Corp has no effect on the direction of Citigroup i.e., Citigroup and Roscan Gold go up and down completely randomly.
Pair Corralation between Citigroup and Roscan Gold
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.31 times more return on investment than Roscan Gold. However, Citigroup is 3.22 times less risky than Roscan Gold. It trades about 0.21 of its potential returns per unit of risk. Roscan Gold Corp is currently generating about -0.11 per unit of risk. If you would invest 6,360 in Citigroup on August 29, 2024 and sell it today you would earn a total of 615.00 from holding Citigroup or generate 9.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Roscan Gold Corp
Performance |
| Timeline |
| Citigroup |
| Roscan Gold Corp |
Citigroup and Roscan Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Roscan Gold
The main advantage of trading using opposite Citigroup and Roscan Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Roscan Gold 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 Roscan Gold will offset losses from the drop in Roscan Gold's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Roscan Gold vs. Vertiv Holdings Co | Roscan Gold vs. Nasdaq Inc | Roscan Gold vs. McDonalds | Roscan Gold vs. Walmart |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |