Correlation Between Citigroup and CS Real
Can any of the company-specific risk be diversified away by investing in both Citigroup and CS Real 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 CS Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and CS Real Estate, you can compare the effects of market volatilities on Citigroup and CS Real 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 CS Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and CS Real.
Diversification Opportunities for Citigroup and CS Real
Poor diversification
The 3 months correlation between Citigroup and SIAT is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and CS Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CS Real Estate 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 CS Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CS Real Estate has no effect on the direction of Citigroup i.e., Citigroup and CS Real go up and down completely randomly.
Pair Corralation between Citigroup and CS Real
Taking into account the 90-day investment horizon Citigroup is expected to under-perform the CS Real. But the stock apears to be less risky and, when comparing its historical volatility, Citigroup is 1.03 times less risky than CS Real. The stock trades about -0.04 of its potential returns per unit of risk. The CS Real Estate is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 23,700 in CS Real Estate on September 19, 2024 and sell it today you would earn a total of 1,000.00 from holding CS Real Estate or generate 4.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Citigroup vs. CS Real Estate
Performance |
| Timeline |
| Citigroup |
| CS Real Estate |
Citigroup and CS Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and CS Real
The main advantage of trading using opposite Citigroup and CS Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, CS Real 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 CS Real will offset losses from the drop in CS Real's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| CS Real vs. SPDR Dow Jones | CS Real vs. Baloise Holding AG | CS Real vs. SPDR FTSE UK | CS Real vs. Banque Cantonale du |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |