Correlation Between Citigroup and Defiance Daily
Can any of the company-specific risk be diversified away by investing in both Citigroup and Defiance Daily 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 Defiance Daily into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Defiance Daily Target, you can compare the effects of market volatilities on Citigroup and Defiance Daily 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 Defiance Daily. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Defiance Daily.
Diversification Opportunities for Citigroup and Defiance Daily
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Defiance is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Defiance Daily Target in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Defiance Daily Target 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 Defiance Daily. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Defiance Daily Target has no effect on the direction of Citigroup i.e., Citigroup and Defiance Daily go up and down completely randomly.
Pair Corralation between Citigroup and Defiance Daily
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.07 times more return on investment than Defiance Daily. However, Citigroup is 13.56 times less risky than Defiance Daily. It trades about 0.21 of its potential returns per unit of risk. Defiance Daily Target is currently generating about -0.04 per unit of risk. If you would invest 6,360 in Citigroup on August 29, 2024 and sell it today you would earn a total of 615.00 from holding Citigroup or generate 9.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Defiance Daily Target
Performance |
| Timeline |
| Citigroup |
| Defiance Daily Target |
Citigroup and Defiance Daily Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Defiance Daily
The main advantage of trading using opposite Citigroup and Defiance Daily positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Defiance Daily 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 Defiance Daily will offset losses from the drop in Defiance Daily's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Defiance Daily vs. Freedom Day Dividend | Defiance Daily vs. Franklin Templeton ETF | Defiance Daily vs. iShares MSCI China | Defiance Daily vs. Tidal Trust II |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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