Correlation Between Citigroup and San Leon
Can any of the company-specific risk be diversified away by investing in both Citigroup and San Leon 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 San Leon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and San Leon Energy, you can compare the effects of market volatilities on Citigroup and San Leon 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 San Leon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and San Leon.
Diversification Opportunities for Citigroup and San Leon
Pay attention - limited upside
The 3 months correlation between Citigroup and San is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and San Leon Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on San Leon 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 San Leon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of San Leon Energy has no effect on the direction of Citigroup i.e., Citigroup and San Leon go up and down completely randomly.
Pair Corralation between Citigroup and San Leon
If you would invest 5,308 in Citigroup on November 3, 2024 and sell it today you would earn a total of 2,835 from holding Citigroup or generate 53.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.8% |
| Values | Daily Returns |
Citigroup vs. San Leon Energy
Performance |
| Timeline |
| Citigroup |
| San Leon Energy |
Citigroup and San Leon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and San Leon
The main advantage of trading using opposite Citigroup and San Leon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, San Leon 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 San Leon will offset losses from the drop in San Leon's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| San Leon vs. Horizon Oil Limited | San Leon vs. PetroShale | San Leon vs. Enwell Energy plc | San Leon vs. Tullow Oil plc |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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