Correlation Between Citigroup and Sidma SA
Can any of the company-specific risk be diversified away by investing in both Citigroup and Sidma SA 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 Sidma SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Sidma SA Steel, you can compare the effects of market volatilities on Citigroup and Sidma SA 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 Sidma SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Sidma SA.
Diversification Opportunities for Citigroup and Sidma SA
Pay attention - limited upside
The 3 months correlation between Citigroup and Sidma is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Sidma SA Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sidma SA Steel 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 Sidma SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sidma SA Steel has no effect on the direction of Citigroup i.e., Citigroup and Sidma SA go up and down completely randomly.
Pair Corralation between Citigroup and Sidma SA
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.81 times more return on investment than Sidma SA. However, Citigroup is 1.24 times less risky than Sidma SA. It trades about 0.08 of its potential returns per unit of risk. Sidma SA Steel is currently generating about -0.04 per unit of risk. If you would invest 4,362 in Citigroup on August 29, 2024 and sell it today you would earn a total of 2,613 from holding Citigroup or generate 59.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.49% |
| Values | Daily Returns |
Citigroup vs. Sidma SA Steel
Performance |
| Timeline |
| Citigroup |
| Sidma SA Steel |
Citigroup and Sidma SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Sidma SA
The main advantage of trading using opposite Citigroup and Sidma SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Sidma SA 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 Sidma SA will offset losses from the drop in Sidma SA's long position.The idea behind Citigroup and Sidma SA Steel pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Sidma SA vs. National Bank of | Sidma SA vs. EL D Mouzakis | Sidma SA vs. Lampsa Hellenic Hotels | Sidma SA vs. Eurobank Ergasias Services |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |