Correlation Between Citigroup and STANLEY ELECTRIC
Can any of the company-specific risk be diversified away by investing in both Citigroup and STANLEY ELECTRIC 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 STANLEY ELECTRIC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and STANLEY ELECTRIC CO, you can compare the effects of market volatilities on Citigroup and STANLEY ELECTRIC 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 STANLEY ELECTRIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and STANLEY ELECTRIC.
Diversification Opportunities for Citigroup and STANLEY ELECTRIC
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and STANLEY is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and STANLEY ELECTRIC CO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STANLEY ELECTRIC 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 STANLEY ELECTRIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STANLEY ELECTRIC has no effect on the direction of Citigroup i.e., Citigroup and STANLEY ELECTRIC go up and down completely randomly.
Pair Corralation between Citigroup and STANLEY ELECTRIC
If you would invest 6,037 in Citigroup on November 28, 2024 and sell it today you would earn a total of 1,777 from holding Citigroup or generate 29.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.55% |
| Values | Daily Returns |
Citigroup vs. STANLEY ELECTRIC CO
Performance |
| Timeline |
| Citigroup |
| STANLEY ELECTRIC |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Citigroup and STANLEY ELECTRIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and STANLEY ELECTRIC
The main advantage of trading using opposite Citigroup and STANLEY ELECTRIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, STANLEY ELECTRIC 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 STANLEY ELECTRIC will offset losses from the drop in STANLEY ELECTRIC's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| STANLEY ELECTRIC vs. SCANSOURCE | STANLEY ELECTRIC vs. Ares Management Corp | STANLEY ELECTRIC vs. Thai Beverage Public | STANLEY ELECTRIC vs. Coor Service Management |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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