Correlation Between Citigroup and Swissinvest Real
Can any of the company-specific risk be diversified away by investing in both Citigroup and Swissinvest 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 Swissinvest Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Swissinvest Real Estate, you can compare the effects of market volatilities on Citigroup and Swissinvest 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 Swissinvest Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Swissinvest Real.
Diversification Opportunities for Citigroup and Swissinvest Real
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Citigroup and Swissinvest is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Swissinvest Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swissinvest Real Estate 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 Swissinvest Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swissinvest Real Estate has no effect on the direction of Citigroup i.e., Citigroup and Swissinvest Real go up and down completely randomly.
Pair Corralation between Citigroup and Swissinvest Real
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.51 times less return on investment than Swissinvest Real. In addition to that, Citigroup is 2.1 times more volatile than Swissinvest Real Estate. It trades about 0.06 of its total potential returns per unit of risk. Swissinvest Real Estate is currently generating about 0.29 per unit of volatility. If you would invest 19,950 in Swissinvest Real Estate on September 21, 2024 and sell it today you would earn a total of 750.00 from holding Swissinvest Real Estate or generate 3.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Swissinvest Real Estate
Performance |
| Timeline |
| Citigroup |
| Swissinvest Real Estate |
Citigroup and Swissinvest Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Swissinvest Real
The main advantage of trading using opposite Citigroup and Swissinvest Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Swissinvest 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 Swissinvest Real will offset losses from the drop in Swissinvest Real's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Swissinvest Real vs. SPDR Dow Jones | Swissinvest Real vs. Baloise Holding AG | Swissinvest Real vs. Banque Cantonale du | Swissinvest Real vs. 21Shares Polkadot ETP |
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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |