Correlation Between Citigroup and S IMMO
Can any of the company-specific risk be diversified away by investing in both Citigroup and S IMMO 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 S IMMO into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and S IMMO AG, you can compare the effects of market volatilities on Citigroup and S IMMO 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 S IMMO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and S IMMO.
Diversification Opportunities for Citigroup and S IMMO
Very good diversification
The 3 months correlation between Citigroup and SPI is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and S IMMO AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on S IMMO AG 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 S IMMO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of S IMMO AG has no effect on the direction of Citigroup i.e., Citigroup and S IMMO go up and down completely randomly.
Pair Corralation between Citigroup and S IMMO
Taking into account the 90-day investment horizon Citigroup is expected to generate 4.33 times more return on investment than S IMMO. However, Citigroup is 4.33 times more volatile than S IMMO AG. It trades about 0.21 of its potential returns per unit of risk. S IMMO AG is currently generating about 0.04 per unit of risk. If you would invest 6,255 in Citigroup on August 24, 2024 and sell it today you would earn a total of 640.00 from holding Citigroup or generate 10.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. S IMMO AG
Performance |
| Timeline |
| Citigroup |
| S IMMO AG |
Citigroup and S IMMO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and S IMMO
The main advantage of trading using opposite Citigroup and S IMMO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, S IMMO 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 S IMMO will offset losses from the drop in S IMMO's long position.| Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Royal Bank of | Citigroup vs. JPMorgan Chase Co |
| S IMMO vs. CA Immobilien Anlagen | S IMMO vs. UBM Development AG | S IMMO vs. AT S Austria | S IMMO vs. BAWAG Group AG |
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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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