Correlation Between Citigroup and Snowline Gold
Can any of the company-specific risk be diversified away by investing in both Citigroup and Snowline Gold 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 Snowline Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Snowline Gold Corp, you can compare the effects of market volatilities on Citigroup and Snowline Gold 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 Snowline Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Snowline Gold.
Diversification Opportunities for Citigroup and Snowline Gold
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Citigroup and Snowline is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Snowline Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Snowline Gold Corp 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 Snowline Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Snowline Gold Corp has no effect on the direction of Citigroup i.e., Citigroup and Snowline Gold go up and down completely randomly.
Pair Corralation between Citigroup and Snowline Gold
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.76 times more return on investment than Snowline Gold. However, Citigroup is 1.31 times less risky than Snowline Gold. It trades about 0.21 of its potential returns per unit of risk. Snowline Gold Corp is currently generating about -0.21 per unit of risk. If you would invest 6,412 in Citigroup on August 30, 2024 and sell it today you would earn a total of 604.00 from holding Citigroup or generate 9.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Snowline Gold Corp
Performance |
| Timeline |
| Citigroup |
| Snowline Gold Corp |
Citigroup and Snowline Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Snowline Gold
The main advantage of trading using opposite Citigroup and Snowline Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Snowline Gold 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 Snowline Gold will offset losses from the drop in Snowline Gold's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Snowline Gold vs. Vertiv Holdings Co | Snowline Gold vs. Nasdaq Inc | Snowline Gold vs. McDonalds | Snowline Gold vs. Walmart |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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