Correlation Between Citigroup and Rapid Fire
Can any of the company-specific risk be diversified away by investing in both Citigroup and Rapid Fire 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 Rapid Fire into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Rapid Fire Marketing, you can compare the effects of market volatilities on Citigroup and Rapid Fire 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 Rapid Fire. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Rapid Fire.
Diversification Opportunities for Citigroup and Rapid Fire
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Rapid is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Rapid Fire Marketing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rapid Fire Marketing 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 Rapid Fire. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rapid Fire Marketing has no effect on the direction of Citigroup i.e., Citigroup and Rapid Fire go up and down completely randomly.
Pair Corralation between Citigroup and Rapid Fire
If you would invest 4,950 in Citigroup on September 20, 2024 and sell it today you would earn a total of 1,952 from holding Citigroup or generate 39.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Citigroup vs. Rapid Fire Marketing
Performance |
| Timeline |
| Citigroup |
| Rapid Fire Marketing |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Rapid Fire Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Rapid Fire
The main advantage of trading using opposite Citigroup and Rapid Fire positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Rapid Fire 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 Rapid Fire will offset losses from the drop in Rapid Fire's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Rapid Fire vs. Toro Co | Rapid Fire vs. Edgewell Personal Care | Rapid Fire vs. Compania Cervecerias Unidas | Rapid Fire vs. Beauty Health Co |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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