Correlation Between Citigroup and SNM Gobal
Can any of the company-specific risk be diversified away by investing in both Citigroup and SNM Gobal 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 SNM Gobal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and SNM Gobal Holdings, you can compare the effects of market volatilities on Citigroup and SNM Gobal 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 SNM Gobal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and SNM Gobal.
Diversification Opportunities for Citigroup and SNM Gobal
Very weak diversification
The 3 months correlation between Citigroup and SNM is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and SNM Gobal Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SNM Gobal Holdings 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 SNM Gobal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SNM Gobal Holdings has no effect on the direction of Citigroup i.e., Citigroup and SNM Gobal go up and down completely randomly.
Pair Corralation between Citigroup and SNM Gobal
If you would invest 0.01 in SNM Gobal Holdings on November 28, 2024 and sell it today you would earn a total of 0.00 from holding SNM Gobal Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. SNM Gobal Holdings
Performance |
| Timeline |
| Citigroup |
| SNM Gobal Holdings |
Citigroup and SNM Gobal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and SNM Gobal
The main advantage of trading using opposite Citigroup and SNM Gobal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, SNM Gobal 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 SNM Gobal will offset losses from the drop in SNM Gobal's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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