Correlation Between Citigroup and Silver One
Can any of the company-specific risk be diversified away by investing in both Citigroup and Silver One 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 Silver One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Silver One Resources, you can compare the effects of market volatilities on Citigroup and Silver One 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 Silver One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Silver One.
Diversification Opportunities for Citigroup and Silver One
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and Silver is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Silver One Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silver One Resources 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 Silver One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silver One Resources has no effect on the direction of Citigroup i.e., Citigroup and Silver One go up and down completely randomly.
Pair Corralation between Citigroup and Silver One
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.03 times less return on investment than Silver One. But when comparing it to its historical volatility, Citigroup is 3.53 times less risky than Silver One. It trades about 0.07 of its potential returns per unit of risk. Silver One Resources is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 19.00 in Silver One Resources on August 28, 2024 and sell it today you would lose (3.00) from holding Silver One Resources or give up 15.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Silver One Resources
Performance |
| Timeline |
| Citigroup |
| Silver One Resources |
Citigroup and Silver One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Silver One
The main advantage of trading using opposite Citigroup and Silver One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Silver One 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 Silver One will offset losses from the drop in Silver One's long position.| Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal | Citigroup vs. Bank of Nova |
| Silver One vs. Ascendant Resources | Silver One vs. Cantex Mine Development | Silver One vs. Amarc Resources | Silver One vs. Sterling Metals Corp |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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