Correlation Between Citigroup and Senior Connect
Can any of the company-specific risk be diversified away by investing in both Citigroup and Senior Connect 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 Senior Connect into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Senior Connect Acquisition, you can compare the effects of market volatilities on Citigroup and Senior Connect 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 Senior Connect. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Senior Connect.
Diversification Opportunities for Citigroup and Senior Connect
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Citigroup and Senior is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Senior Connect Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Senior Connect Acqui 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 Senior Connect. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Senior Connect Acqui has no effect on the direction of Citigroup i.e., Citigroup and Senior Connect go up and down completely randomly.
Pair Corralation between Citigroup and Senior Connect
If you would invest 6,361 in Citigroup on September 1, 2024 and sell it today you would earn a total of 726.00 from holding Citigroup or generate 11.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Citigroup vs. Senior Connect Acquisition
Performance |
| Timeline |
| Citigroup |
| Senior Connect Acqui |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Senior Connect Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Senior Connect
The main advantage of trading using opposite Citigroup and Senior Connect positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Senior Connect 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 Senior Connect will offset losses from the drop in Senior Connect's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Senior Connect vs. IX Acquisition Corp | Senior Connect vs. LatAmGrowth SPAC | Senior Connect vs. Portage Fintech Acquisition | Senior Connect vs. Swiftmerge Acquisition 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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