Correlation Between Citigroup and Global Sukses
Can any of the company-specific risk be diversified away by investing in both Citigroup and Global Sukses 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 Global Sukses into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Global Sukses Solusi, you can compare the effects of market volatilities on Citigroup and Global Sukses 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 Global Sukses. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Global Sukses.
Diversification Opportunities for Citigroup and Global Sukses
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and Global is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Global Sukses Solusi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Sukses Solusi 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 Global Sukses. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Sukses Solusi has no effect on the direction of Citigroup i.e., Citigroup and Global Sukses go up and down completely randomly.
Pair Corralation between Citigroup and Global Sukses
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.43 times more return on investment than Global Sukses. However, Citigroup is 2.34 times less risky than Global Sukses. It trades about 0.08 of its potential returns per unit of risk. Global Sukses Solusi is currently generating about -0.03 per unit of risk. If you would invest 4,492 in Citigroup on November 28, 2024 and sell it today you would earn a total of 3,322 from holding Citigroup or generate 73.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.73% |
| Values | Daily Returns |
Citigroup vs. Global Sukses Solusi
Performance |
| Timeline |
| Citigroup |
| Global Sukses Solusi |
Citigroup and Global Sukses Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Global Sukses
The main advantage of trading using opposite Citigroup and Global Sukses positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Global Sukses 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 Global Sukses will offset losses from the drop in Global Sukses' long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Global Sukses vs. Trimegah Karya Pratama | Global Sukses vs. Surya Biru Murni | Global Sukses vs. Indo Oil Perkasa | Global Sukses vs. Wira Global Solusi |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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