Correlation Between Citigroup and Safe
Can any of the company-specific risk be diversified away by investing in both Citigroup and Safe 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 Safe into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Safe and Green, you can compare the effects of market volatilities on Citigroup and Safe 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 Safe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Safe.
Diversification Opportunities for Citigroup and Safe
Excellent diversification
The 3 months correlation between Citigroup and Safe is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Safe and Green in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Safe and Green 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 Safe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Safe and Green has no effect on the direction of Citigroup i.e., Citigroup and Safe go up and down completely randomly.
Pair Corralation between Citigroup and Safe
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.2 times more return on investment than Safe. However, Citigroup is 5.03 times less risky than Safe. It trades about 0.25 of its potential returns per unit of risk. Safe and Green is currently generating about -0.17 per unit of risk. If you would invest 6,360 in Citigroup on August 28, 2024 and sell it today you would earn a total of 715.00 from holding Citigroup or generate 11.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Safe and Green
Performance |
| Timeline |
| Citigroup |
| Safe and Green |
Citigroup and Safe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Safe
The main advantage of trading using opposite Citigroup and Safe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Safe 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 Safe will offset losses from the drop in Safe's long position.| Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal | Citigroup vs. Bank of Nova |
| Safe vs. Investcorp Credit Management | Safe vs. Medalist Diversified Reit | Safe vs. Aquagold International | Safe vs. Morningstar Unconstrained Allocation |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |