Correlation Between Citigroup and SavWatt USA
Can any of the company-specific risk be diversified away by investing in both Citigroup and SavWatt USA 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 SavWatt USA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and SavWatt USA, you can compare the effects of market volatilities on Citigroup and SavWatt USA 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 SavWatt USA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and SavWatt USA.
Diversification Opportunities for Citigroup and SavWatt USA
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and SavWatt is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and SavWatt USA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SavWatt USA 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 SavWatt USA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SavWatt USA has no effect on the direction of Citigroup i.e., Citigroup and SavWatt USA go up and down completely randomly.
Pair Corralation between Citigroup and SavWatt USA
If you would invest 4,364 in Citigroup on September 14, 2024 and sell it today you would earn a total of 2,737 from holding Citigroup or generate 62.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.37% |
| Values | Daily Returns |
Citigroup vs. SavWatt USA
Performance |
| Timeline |
| Citigroup |
| SavWatt USA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and SavWatt USA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and SavWatt USA
The main advantage of trading using opposite Citigroup and SavWatt USA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, SavWatt USA 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 SavWatt USA will offset losses from the drop in SavWatt USA's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| SavWatt USA vs. Grupo Televisa SAB | SavWatt USA vs. PennantPark Floating Rate | SavWatt USA vs. US Global Investors | SavWatt USA vs. Kaiser Aluminum |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |