Correlation Between Citigroup and PT Steel
Can any of the company-specific risk be diversified away by investing in both Citigroup and PT Steel 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 PT Steel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and PT Steel Pipe, you can compare the effects of market volatilities on Citigroup and PT Steel 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 PT Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and PT Steel.
Diversification Opportunities for Citigroup and PT Steel
Pay attention - limited upside
The 3 months correlation between Citigroup and S08 is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and PT Steel Pipe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Steel Pipe 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 PT Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Steel Pipe has no effect on the direction of Citigroup i.e., Citigroup and PT Steel go up and down completely randomly.
Pair Corralation between Citigroup and PT Steel
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.22 times more return on investment than PT Steel. However, Citigroup is 4.53 times less risky than PT Steel. It trades about 0.45 of its potential returns per unit of risk. PT Steel Pipe is currently generating about 0.07 per unit of risk. If you would invest 6,842 in Citigroup on October 20, 2024 and sell it today you would earn a total of 1,157 from holding Citigroup or generate 16.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.0% |
| Values | Daily Returns |
Citigroup vs. PT Steel Pipe
Performance |
| Timeline |
| Citigroup |
| PT Steel Pipe |
Citigroup and PT Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and PT Steel
The main advantage of trading using opposite Citigroup and PT Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, PT Steel 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 PT Steel will offset losses from the drop in PT Steel's long position.| Citigroup vs. Bank of Montreal | Citigroup vs. Canadian Imperial Bank | Citigroup vs. Bank of Nova | Citigroup vs. JPMorgan Chase Co |
| PT Steel vs. ON SEMICONDUCTOR | PT Steel vs. National Beverage Corp | PT Steel vs. INTER CARS SA | PT Steel vs. Fevertree Drinks PLC |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |