Correlation Between Citigroup and SOCKET MOBILE
Can any of the company-specific risk be diversified away by investing in both Citigroup and SOCKET MOBILE 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 SOCKET MOBILE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and SOCKET MOBILE NEW, you can compare the effects of market volatilities on Citigroup and SOCKET MOBILE 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 SOCKET MOBILE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and SOCKET MOBILE.
Diversification Opportunities for Citigroup and SOCKET MOBILE
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and SOCKET is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and SOCKET MOBILE NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOCKET MOBILE NEW 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 SOCKET MOBILE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOCKET MOBILE NEW has no effect on the direction of Citigroup i.e., Citigroup and SOCKET MOBILE go up and down completely randomly.
Pair Corralation between Citigroup and SOCKET MOBILE
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.33 times more return on investment than SOCKET MOBILE. However, Citigroup is 3.02 times less risky than SOCKET MOBILE. It trades about 0.04 of its potential returns per unit of risk. SOCKET MOBILE NEW is currently generating about -0.04 per unit of risk. If you would invest 7,250 in Citigroup on October 11, 2024 and sell it today you would earn a total of 76.00 from holding Citigroup or generate 1.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 85.0% |
| Values | Daily Returns |
Citigroup vs. SOCKET MOBILE NEW
Performance |
| Timeline |
| Citigroup |
| SOCKET MOBILE NEW |
Citigroup and SOCKET MOBILE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and SOCKET MOBILE
The main advantage of trading using opposite Citigroup and SOCKET MOBILE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, SOCKET MOBILE 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 SOCKET MOBILE will offset losses from the drop in SOCKET MOBILE's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| SOCKET MOBILE vs. OBSERVE MEDICAL ASA | SOCKET MOBILE vs. MARKET VECTR RETAIL | SOCKET MOBILE vs. Fast Retailing Co | SOCKET MOBILE vs. QURATE RETAIL 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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