Correlation Between Citigroup and ZOZO
Can any of the company-specific risk be diversified away by investing in both Citigroup and ZOZO 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 ZOZO into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and ZOZO Inc, you can compare the effects of market volatilities on Citigroup and ZOZO 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 ZOZO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and ZOZO.
Diversification Opportunities for Citigroup and ZOZO
Almost no diversification
The 3 months correlation between Citigroup and ZOZO is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and ZOZO Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZOZO Inc 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 ZOZO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZOZO Inc has no effect on the direction of Citigroup i.e., Citigroup and ZOZO go up and down completely randomly.
Pair Corralation between Citigroup and ZOZO
Taking into account the 90-day investment horizon Citigroup is expected to generate 7.26 times more return on investment than ZOZO. However, Citigroup is 7.26 times more volatile than ZOZO Inc. It trades about 0.29 of its potential returns per unit of risk. ZOZO Inc is currently generating about -0.5 per unit of risk. If you would invest 6,122 in Citigroup on August 26, 2024 and sell it today you would earn a total of 862.00 from holding Citigroup or generate 14.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 18.18% |
| Values | Daily Returns |
Citigroup vs. ZOZO Inc
Performance |
| Timeline |
| Citigroup |
| ZOZO Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Citigroup and ZOZO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and ZOZO
The main advantage of trading using opposite Citigroup and ZOZO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, ZOZO 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 ZOZO will offset losses from the drop in ZOZO's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| ZOZO vs. China Tontine Wines | ZOZO vs. Topbuild Corp | ZOZO vs. Vodka Brands Corp | ZOZO vs. Celsius 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |