Correlation Between Citigroup and RWOD Old
Can any of the company-specific risk be diversified away by investing in both Citigroup and RWOD Old 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 RWOD Old into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and RWOD Old, you can compare the effects of market volatilities on Citigroup and RWOD Old 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 RWOD Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and RWOD Old.
Diversification Opportunities for Citigroup and RWOD Old
Excellent diversification
The 3 months correlation between Citigroup and RWOD is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and RWOD Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RWOD Old 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 RWOD Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RWOD Old has no effect on the direction of Citigroup i.e., Citigroup and RWOD Old go up and down completely randomly.
Pair Corralation between Citigroup and RWOD Old
If you would invest 6,994 in Citigroup on November 3, 2024 and sell it today you would earn a total of 1,149 from holding Citigroup or generate 16.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Citigroup vs. RWOD Old
Performance |
| Timeline |
| Citigroup |
| RWOD Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and RWOD Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and RWOD Old
The main advantage of trading using opposite Citigroup and RWOD Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, RWOD Old 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 RWOD Old will offset losses from the drop in RWOD Old's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
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 Stocks Directory module to find actively traded stocks across global markets.
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