Correlation Between Citigroup and Sentinel Mon
Can any of the company-specific risk be diversified away by investing in both Citigroup and Sentinel Mon 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 Sentinel Mon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Sentinel Mon Stock, you can compare the effects of market volatilities on Citigroup and Sentinel Mon 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 Sentinel Mon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Sentinel Mon.
Diversification Opportunities for Citigroup and Sentinel Mon
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Citigroup and Sentinel is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Sentinel Mon Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sentinel Mon Stock 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 Sentinel Mon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sentinel Mon Stock has no effect on the direction of Citigroup i.e., Citigroup and Sentinel Mon go up and down completely randomly.
Pair Corralation between Citigroup and Sentinel Mon
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.79 times more return on investment than Sentinel Mon. However, Citigroup is 2.79 times more volatile than Sentinel Mon Stock. It trades about 0.23 of its potential returns per unit of risk. Sentinel Mon Stock is currently generating about 0.08 per unit of risk. If you would invest 6,255 in Citigroup on August 24, 2024 and sell it today you would earn a total of 729.00 from holding Citigroup or generate 11.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Sentinel Mon Stock
Performance |
| Timeline |
| Citigroup |
| Sentinel Mon Stock |
Citigroup and Sentinel Mon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Sentinel Mon
The main advantage of trading using opposite Citigroup and Sentinel Mon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Sentinel Mon 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 Sentinel Mon will offset losses from the drop in Sentinel Mon's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Sentinel Mon vs. Sentinel Mon Stock | Sentinel Mon vs. Sentinel Mon Stock | Sentinel Mon vs. Siit Dynamic Asset | Sentinel Mon vs. Simt Sp 500 |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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