Correlation Between Citigroup and Rose Hill
Can any of the company-specific risk be diversified away by investing in both Citigroup and Rose Hill 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 Rose Hill into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Rose Hill Acquisition, you can compare the effects of market volatilities on Citigroup and Rose Hill 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 Rose Hill. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Rose Hill.
Diversification Opportunities for Citigroup and Rose Hill
Significant diversification
The 3 months correlation between Citigroup and Rose is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Rose Hill Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rose Hill Acquisition 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 Rose Hill. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rose Hill Acquisition has no effect on the direction of Citigroup i.e., Citigroup and Rose Hill go up and down completely randomly.
Pair Corralation between Citigroup and Rose Hill
If you would invest 6,079 in Citigroup on September 1, 2024 and sell it today you would earn a total of 1,008 from holding Citigroup or generate 16.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.79% |
| Values | Daily Returns |
Citigroup vs. Rose Hill Acquisition
Performance |
| Timeline |
| Citigroup |
| Rose Hill Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Rose Hill Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Rose Hill
The main advantage of trading using opposite Citigroup and Rose Hill positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Rose Hill 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 Rose Hill will offset losses from the drop in Rose Hill's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Rose Hill vs. National Energy Services | Rose Hill vs. Oxbridge Re Holdings | Rose Hill vs. PAVmed Series Z |
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.
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