Correlation Between Citigroup and Rock Tech
Can any of the company-specific risk be diversified away by investing in both Citigroup and Rock Tech 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 Rock Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Rock Tech Lithium, you can compare the effects of market volatilities on Citigroup and Rock Tech 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 Rock Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Rock Tech.
Diversification Opportunities for Citigroup and Rock Tech
Very good diversification
The 3 months correlation between Citigroup and Rock is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Rock Tech Lithium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rock Tech Lithium 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 Rock Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rock Tech Lithium has no effect on the direction of Citigroup i.e., Citigroup and Rock Tech go up and down completely randomly.
Pair Corralation between Citigroup and Rock Tech
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.38 times more return on investment than Rock Tech. However, Citigroup is 2.61 times less risky than Rock Tech. It trades about 0.07 of its potential returns per unit of risk. Rock Tech Lithium is currently generating about -0.03 per unit of risk. If you would invest 4,134 in Citigroup on August 30, 2024 and sell it today you would earn a total of 2,882 from holding Citigroup or generate 69.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Rock Tech Lithium
Performance |
| Timeline |
| Citigroup |
| Rock Tech Lithium |
Citigroup and Rock Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Rock Tech
The main advantage of trading using opposite Citigroup and Rock Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Rock Tech 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 Rock Tech will offset losses from the drop in Rock Tech's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Rock Tech vs. Rockridge Resources | Rock Tech vs. Ameriwest Lithium | Rock Tech vs. Osisko Metals Incorporated | Rock Tech vs. Volt Lithium Corp |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |