Correlation Between Citigroup and Rems International
Can any of the company-specific risk be diversified away by investing in both Citigroup and Rems International 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 Rems International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Rems International Real, you can compare the effects of market volatilities on Citigroup and Rems International 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 Rems International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Rems International.
Diversification Opportunities for Citigroup and Rems International
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Rems is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Rems International Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rems International Real 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 Rems International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rems International Real has no effect on the direction of Citigroup i.e., Citigroup and Rems International go up and down completely randomly.
Pair Corralation between Citigroup and Rems International
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.62 times more return on investment than Rems International. However, Citigroup is 2.62 times more volatile than Rems International Real. It trades about 0.22 of its potential returns per unit of risk. Rems International Real is currently generating about -0.2 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 656.00 from holding Citigroup or generate 10.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Rems International Real
Performance |
| Timeline |
| Citigroup |
| Rems International Real |
Citigroup and Rems International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Rems International
The main advantage of trading using opposite Citigroup and Rems International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Rems International 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 Rems International will offset losses from the drop in Rems International's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Rems International vs. Mfs Global Real | Rems International vs. Janus Global Real | Rems International vs. Tcw Global Real |
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.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |