Correlation Between Citigroup and Simt Real
Can any of the company-specific risk be diversified away by investing in both Citigroup and Simt Real 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 Simt Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Simt Real Return, you can compare the effects of market volatilities on Citigroup and Simt Real 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 Simt Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Simt Real.
Diversification Opportunities for Citigroup and Simt Real
Very good diversification
The 3 months correlation between Citigroup and SIMT is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Simt Real Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Real Return 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 Simt Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simt Real Return has no effect on the direction of Citigroup i.e., Citigroup and Simt Real go up and down completely randomly.
Pair Corralation between Citigroup and Simt Real
Taking into account the 90-day investment horizon Citigroup is expected to generate 18.26 times more return on investment than Simt Real. However, Citigroup is 18.26 times more volatile than Simt Real Return. It trades about 0.21 of its potential returns per unit of risk. Simt Real Return is currently generating about 0.13 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. Simt Real Return
Performance |
| Timeline |
| Citigroup |
| Simt Real Return |
Citigroup and Simt Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Simt Real
The main advantage of trading using opposite Citigroup and Simt Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Simt Real 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 Simt Real will offset losses from the drop in Simt Real's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Simt Real vs. Saat Moderate Strategy | Simt Real vs. Lifestyle Ii Moderate | Simt Real vs. Jp Morgan Smartretirement | Simt Real vs. Fidelity Managed Retirement |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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