Correlation Between Citigroup and Round One
Can any of the company-specific risk be diversified away by investing in both Citigroup and Round One 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 Round One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Round One, you can compare the effects of market volatilities on Citigroup and Round One 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 Round One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Round One.
Diversification Opportunities for Citigroup and Round One
Good diversification
The 3 months correlation between Citigroup and Round is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Round One in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Round One 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 Round One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Round One has no effect on the direction of Citigroup i.e., Citigroup and Round One go up and down completely randomly.
Pair Corralation between Citigroup and Round One
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.01 times more return on investment than Round One. However, Citigroup is 71.72 times less risky than Round One. It trades about 0.08 of its potential returns per unit of risk. Round One is currently generating about -0.12 per unit of risk. If you would invest 4,091 in Citigroup on September 14, 2024 and sell it today you would earn a total of 3,029 from holding Citigroup or generate 74.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 30.1% |
| Values | Daily Returns |
Citigroup vs. Round One
Performance |
| Timeline |
| Citigroup |
| Round One |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Round One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Round One
The main advantage of trading using opposite Citigroup and Round One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Round One 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 Round One will offset losses from the drop in Round One's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Round One vs. Six Flags Entertainment | Round One vs. Johnson Outdoors | Round One vs. Acushnet Holdings Corp | Round One vs. Mattel Inc |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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