Correlation Between Citigroup and ACELYRIN, INC
Can any of the company-specific risk be diversified away by investing in both Citigroup and ACELYRIN, INC 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 ACELYRIN, INC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and ACELYRIN, INC Common, you can compare the effects of market volatilities on Citigroup and ACELYRIN, INC 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 ACELYRIN, INC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and ACELYRIN, INC.
Diversification Opportunities for Citigroup and ACELYRIN, INC
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Citigroup and ACELYRIN, is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and ACELYRIN, INC Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACELYRIN, INC Common 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 ACELYRIN, INC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACELYRIN, INC Common has no effect on the direction of Citigroup i.e., Citigroup and ACELYRIN, INC go up and down completely randomly.
Pair Corralation between Citigroup and ACELYRIN, INC
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.27 times more return on investment than ACELYRIN, INC. However, Citigroup is 3.68 times less risky than ACELYRIN, INC. It trades about 0.07 of its potential returns per unit of risk. ACELYRIN, INC Common is currently generating about -0.02 per unit of risk. If you would invest 4,381 in Citigroup on August 31, 2024 and sell it today you would earn a total of 2,706 from holding Citigroup or generate 61.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 83.05% |
| Values | Daily Returns |
Citigroup vs. ACELYRIN, INC Common
Performance |
| Timeline |
| Citigroup |
| ACELYRIN, INC Common |
Citigroup and ACELYRIN, INC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and ACELYRIN, INC
The main advantage of trading using opposite Citigroup and ACELYRIN, INC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, ACELYRIN, INC 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 ACELYRIN, INC will offset losses from the drop in ACELYRIN, INC's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| ACELYRIN, INC vs. Inflection Point Acquisition | ACELYRIN, INC vs. Sabre Corpo | ACELYRIN, INC vs. Griffon | ACELYRIN, INC vs. Sapiens International |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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