Correlation Between Citigroup and Siriuspoint
Can any of the company-specific risk be diversified away by investing in both Citigroup and Siriuspoint 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 Siriuspoint into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Siriuspoint, you can compare the effects of market volatilities on Citigroup and Siriuspoint 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 Siriuspoint. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Siriuspoint.
Diversification Opportunities for Citigroup and Siriuspoint
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Citigroup and Siriuspoint is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Siriuspoint in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siriuspoint 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 Siriuspoint. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siriuspoint has no effect on the direction of Citigroup i.e., Citigroup and Siriuspoint go up and down completely randomly.
Pair Corralation between Citigroup and Siriuspoint
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.97 times more return on investment than Siriuspoint. However, Citigroup is 1.03 times less risky than Siriuspoint. It trades about 0.11 of its potential returns per unit of risk. Siriuspoint is currently generating about 0.05 per unit of risk. If you would invest 6,125 in Citigroup on August 26, 2024 and sell it today you would earn a total of 859.00 from holding Citigroup or generate 14.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Siriuspoint
Performance |
| Timeline |
| Citigroup |
| Siriuspoint |
Citigroup and Siriuspoint Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Siriuspoint
The main advantage of trading using opposite Citigroup and Siriuspoint positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Siriuspoint 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 Siriuspoint will offset losses from the drop in Siriuspoint's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| Siriuspoint vs. Maiden Holdings | Siriuspoint vs. Reinsurance Group of | Siriuspoint vs. Oxbridge Re Holdings | Siriuspoint vs. Greenlight Capital Re |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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