Correlation Between Citigroup and STONE ENERGY
Can any of the company-specific risk be diversified away by investing in both Citigroup and STONE ENERGY 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 STONE ENERGY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and STONE ENERGY, you can compare the effects of market volatilities on Citigroup and STONE ENERGY 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 STONE ENERGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and STONE ENERGY.
Diversification Opportunities for Citigroup and STONE ENERGY
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and STONE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and STONE ENERGY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STONE ENERGY 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 STONE ENERGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STONE ENERGY has no effect on the direction of Citigroup i.e., Citigroup and STONE ENERGY go up and down completely randomly.
Pair Corralation between Citigroup and STONE ENERGY
If you would invest 4,790 in Citigroup on October 12, 2024 and sell it today you would earn a total of 2,350 from holding Citigroup or generate 49.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Citigroup vs. STONE ENERGY
Performance |
| Timeline |
| Citigroup |
| STONE ENERGY |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and STONE ENERGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and STONE ENERGY
The main advantage of trading using opposite Citigroup and STONE ENERGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, STONE ENERGY 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 STONE ENERGY will offset losses from the drop in STONE ENERGY's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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