Correlation Between Citigroup and Bushido Capital
Can any of the company-specific risk be diversified away by investing in both Citigroup and Bushido Capital 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 Bushido Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Bushido Capital Equity, you can compare the effects of market volatilities on Citigroup and Bushido Capital 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 Bushido Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Bushido Capital.
Diversification Opportunities for Citigroup and Bushido Capital
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Citigroup and Bushido is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Bushido Capital Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bushido Capital Equity 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 Bushido Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bushido Capital Equity has no effect on the direction of Citigroup i.e., Citigroup and Bushido Capital go up and down completely randomly.
Pair Corralation between Citigroup and Bushido Capital
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.1 times more return on investment than Bushido Capital. However, Citigroup is 2.1 times more volatile than Bushido Capital Equity. It trades about 0.07 of its potential returns per unit of risk. Bushido Capital Equity is currently generating about 0.13 per unit of risk. If you would invest 4,293 in Citigroup on September 3, 2024 and sell it today you would earn a total of 2,846 from holding Citigroup or generate 66.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 62.02% |
| Values | Daily Returns |
Citigroup vs. Bushido Capital Equity
Performance |
| Timeline |
| Citigroup |
| Bushido Capital Equity |
Citigroup and Bushido Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Bushido Capital
The main advantage of trading using opposite Citigroup and Bushido Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Bushido Capital 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 Bushido Capital will offset losses from the drop in Bushido Capital's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Bushido Capital vs. Global X Funds | Bushido Capital vs. Dell Technologies | Bushido Capital vs. Juniper Networks | Bushido Capital vs. HUMANA INC |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |