Correlation Between Citigroup and Saniona AB
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By analyzing existing cross correlation between Citigroup and Saniona AB TO, you can compare the effects of market volatilities on Citigroup and Saniona AB 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 Saniona AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Saniona AB.
Diversification Opportunities for Citigroup and Saniona AB
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Citigroup and Saniona is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Saniona AB TO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saniona AB TO 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 Saniona AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saniona AB TO has no effect on the direction of Citigroup i.e., Citigroup and Saniona AB go up and down completely randomly.
Pair Corralation between Citigroup and Saniona AB
Taking into account the 90-day investment horizon Citigroup is expected to under-perform the Saniona AB. But the stock apears to be less risky and, when comparing its historical volatility, Citigroup is 24.07 times less risky than Saniona AB. The stock trades about -0.05 of its potential returns per unit of risk. The Saniona AB TO is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 64.00 in Saniona AB TO on September 24, 2024 and sell it today you would earn a total of 131.00 from holding Saniona AB TO or generate 204.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Saniona AB TO
Performance |
| Timeline |
| Citigroup |
| Saniona AB TO |
Citigroup and Saniona AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Saniona AB
The main advantage of trading using opposite Citigroup and Saniona AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Saniona AB 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 Saniona AB will offset losses from the drop in Saniona AB's long position.The idea behind Citigroup and Saniona AB TO pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Saniona AB vs. AstraZeneca PLC | Saniona AB vs. Investor AB ser | Saniona AB vs. Investor AB ser | Saniona AB vs. Atlas Copco AB |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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