Correlation Between Citigroup and Surya Biru
Can any of the company-specific risk be diversified away by investing in both Citigroup and Surya Biru 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 Surya Biru into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Surya Biru Murni, you can compare the effects of market volatilities on Citigroup and Surya Biru 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 Surya Biru. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Surya Biru.
Diversification Opportunities for Citigroup and Surya Biru
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and Surya is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Surya Biru Murni in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surya Biru Murni 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 Surya Biru. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surya Biru Murni has no effect on the direction of Citigroup i.e., Citigroup and Surya Biru go up and down completely randomly.
Pair Corralation between Citigroup and Surya Biru
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.43 times more return on investment than Surya Biru. However, Citigroup is 1.43 times more volatile than Surya Biru Murni. It trades about 0.23 of its potential returns per unit of risk. Surya Biru Murni is currently generating about -0.07 per unit of risk. If you would invest 6,360 in Citigroup on August 27, 2024 and sell it today you would earn a total of 624.00 from holding Citigroup or generate 9.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Surya Biru Murni
Performance |
| Timeline |
| Citigroup |
| Surya Biru Murni |
Citigroup and Surya Biru Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Surya Biru
The main advantage of trading using opposite Citigroup and Surya Biru positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Surya Biru 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 Surya Biru will offset losses from the drop in Surya Biru's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| Surya Biru vs. Archi Indonesia Tbk | Surya Biru vs. Nusa Palapa Gemilang | Surya Biru vs. Obm Drilchem PT | Surya Biru vs. PAM Mineral Tbk |
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 Stocks Directory module to find actively traded stocks across global markets.
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