Correlation Between Citigroup and Saga Metals
Can any of the company-specific risk be diversified away by investing in both Citigroup and Saga Metals 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 Saga Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Saga Metals Corp, you can compare the effects of market volatilities on Citigroup and Saga Metals 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 Saga Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Saga Metals.
Diversification Opportunities for Citigroup and Saga Metals
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Saga is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Saga Metals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saga Metals Corp 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 Saga Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saga Metals Corp has no effect on the direction of Citigroup i.e., Citigroup and Saga Metals go up and down completely randomly.
Pair Corralation between Citigroup and Saga Metals
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.22 times more return on investment than Saga Metals. However, Citigroup is 4.55 times less risky than Saga Metals. It trades about 0.06 of its potential returns per unit of risk. Saga Metals Corp is currently generating about 0.0 per unit of risk. If you would invest 6,008 in Citigroup on September 3, 2024 and sell it today you would earn a total of 1,079 from holding Citigroup or generate 17.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 31.33% |
| Values | Daily Returns |
Citigroup vs. Saga Metals Corp
Performance |
| Timeline |
| Citigroup |
| Saga Metals Corp |
Citigroup and Saga Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Saga Metals
The main advantage of trading using opposite Citigroup and Saga Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Saga Metals 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 Saga Metals will offset losses from the drop in Saga Metals' long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Saga Metals vs. Pembina Pipeline Corp | Saga Metals vs. Arizona Gold Silver | Saga Metals vs. Endeavour Silver Corp | Saga Metals vs. MAG Silver Corp |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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