Correlation Between Citigroup and Screaming Eagle
Can any of the company-specific risk be diversified away by investing in both Citigroup and Screaming Eagle 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 Screaming Eagle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Screaming Eagle Acquisition, you can compare the effects of market volatilities on Citigroup and Screaming Eagle 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 Screaming Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Screaming Eagle.
Diversification Opportunities for Citigroup and Screaming Eagle
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Citigroup and Screaming is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Screaming Eagle Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Screaming Eagle Acqu 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 Screaming Eagle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Screaming Eagle Acqu has no effect on the direction of Citigroup i.e., Citigroup and Screaming Eagle go up and down completely randomly.
Pair Corralation between Citigroup and Screaming Eagle
If you would invest 6,079 in Citigroup on September 1, 2024 and sell it today you would earn a total of 1,008 from holding Citigroup or generate 16.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 0.79% |
| Values | Daily Returns |
Citigroup vs. Screaming Eagle Acquisition
Performance |
| Timeline |
| Citigroup |
| Screaming Eagle Acqu |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Screaming Eagle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Screaming Eagle
The main advantage of trading using opposite Citigroup and Screaming Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Screaming Eagle 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 Screaming Eagle will offset losses from the drop in Screaming Eagle's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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