Correlation Between Citigroup and Semacom Integrated
Can any of the company-specific risk be diversified away by investing in both Citigroup and Semacom Integrated 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 Semacom Integrated into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Semacom Integrated Tbk, you can compare the effects of market volatilities on Citigroup and Semacom Integrated 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 Semacom Integrated. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Semacom Integrated.
Diversification Opportunities for Citigroup and Semacom Integrated
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Semacom is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Semacom Integrated Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Semacom Integrated Tbk 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 Semacom Integrated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Semacom Integrated Tbk has no effect on the direction of Citigroup i.e., Citigroup and Semacom Integrated go up and down completely randomly.
Pair Corralation between Citigroup and Semacom Integrated
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.94 times more return on investment than Semacom Integrated. However, Citigroup is 1.07 times less risky than Semacom Integrated. It trades about 0.27 of its potential returns per unit of risk. Semacom Integrated Tbk is currently generating about -0.06 per unit of risk. If you would invest 6,315 in Citigroup on September 2, 2024 and sell it today you would earn a total of 772.00 from holding Citigroup or generate 12.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Semacom Integrated Tbk
Performance |
| Timeline |
| Citigroup |
| Semacom Integrated Tbk |
Citigroup and Semacom Integrated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Semacom Integrated
The main advantage of trading using opposite Citigroup and Semacom Integrated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Semacom Integrated 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 Semacom Integrated will offset losses from the drop in Semacom Integrated's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Semacom Integrated vs. PT Dewi Shri | Semacom Integrated vs. PT Data Sinergitama | Semacom Integrated vs. PAM Mineral Tbk | Semacom Integrated vs. Autopedia Sukses Lestari |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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