Correlation Between Citigroup and Response Oncology
Can any of the company-specific risk be diversified away by investing in both Citigroup and Response Oncology 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 Response Oncology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Response Oncology, you can compare the effects of market volatilities on Citigroup and Response Oncology 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 Response Oncology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Response Oncology.
Diversification Opportunities for Citigroup and Response Oncology
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Response is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Response Oncology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Response Oncology 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 Response Oncology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Response Oncology has no effect on the direction of Citigroup i.e., Citigroup and Response Oncology go up and down completely randomly.
Pair Corralation between Citigroup and Response Oncology
If you would invest 4,162 in Citigroup on September 19, 2024 and sell it today you would earn a total of 2,950 from holding Citigroup or generate 70.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.25% |
| Values | Daily Returns |
Citigroup vs. Response Oncology
Performance |
| Timeline |
| Citigroup |
| Response Oncology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Response Oncology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Response Oncology
The main advantage of trading using opposite Citigroup and Response Oncology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Response Oncology 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 Response Oncology will offset losses from the drop in Response Oncology's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Response Oncology vs. SEI Investments | Response Oncology vs. Seadrill Limited | Response Oncology vs. Freedom Holding Corp | Response Oncology vs. Morgan Stanley |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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