Correlation Between Citigroup and Sailfish Royalty
Can any of the company-specific risk be diversified away by investing in both Citigroup and Sailfish Royalty 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 Sailfish Royalty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Sailfish Royalty Corp, you can compare the effects of market volatilities on Citigroup and Sailfish Royalty 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 Sailfish Royalty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Sailfish Royalty.
Diversification Opportunities for Citigroup and Sailfish Royalty
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Citigroup and Sailfish is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Sailfish Royalty Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sailfish Royalty Corp 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 Sailfish Royalty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sailfish Royalty Corp has no effect on the direction of Citigroup i.e., Citigroup and Sailfish Royalty go up and down completely randomly.
Pair Corralation between Citigroup and Sailfish Royalty
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.6 times more return on investment than Sailfish Royalty. However, Citigroup is 1.67 times less risky than Sailfish Royalty. It trades about 0.21 of its potential returns per unit of risk. Sailfish Royalty Corp is currently generating about -0.25 per unit of risk. If you would invest 6,393 in Citigroup on August 31, 2024 and sell it today you would earn a total of 623.00 from holding Citigroup or generate 9.75% 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. Sailfish Royalty Corp
Performance |
| Timeline |
| Citigroup |
| Sailfish Royalty Corp |
Citigroup and Sailfish Royalty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Sailfish Royalty
The main advantage of trading using opposite Citigroup and Sailfish Royalty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Sailfish Royalty 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 Sailfish Royalty will offset losses from the drop in Sailfish Royalty's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Sailfish Royalty vs. Angkor Resources Corp | Sailfish Royalty vs. Advance Gold Corp | Sailfish Royalty vs. Minnova Corp | Sailfish Royalty vs. Argo Gold |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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