Correlation Between Citigroup and Amplify Samsung
Can any of the company-specific risk be diversified away by investing in both Citigroup and Amplify Samsung 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 Amplify Samsung into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Amplify Samsung SOFR, you can compare the effects of market volatilities on Citigroup and Amplify Samsung 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 Amplify Samsung. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Amplify Samsung.
Diversification Opportunities for Citigroup and Amplify Samsung
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Citigroup and Amplify is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Amplify Samsung SOFR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplify Samsung SOFR 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 Amplify Samsung. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amplify Samsung SOFR has no effect on the direction of Citigroup i.e., Citigroup and Amplify Samsung go up and down completely randomly.
Pair Corralation between Citigroup and Amplify Samsung
If you would invest 6,315 in Citigroup on September 2, 2024 and sell it today you would earn a total of 772.00 from holding Citigroup or generate 12.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 4.76% |
| Values | Daily Returns |
Citigroup vs. Amplify Samsung SOFR
Performance |
| Timeline |
| Citigroup |
| Amplify Samsung SOFR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Market Crasher
Citigroup and Amplify Samsung Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Amplify Samsung
The main advantage of trading using opposite Citigroup and Amplify Samsung positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Amplify Samsung 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 Amplify Samsung will offset losses from the drop in Amplify Samsung'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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |