Correlation Between Citigroup and Sumber Tani
Can any of the company-specific risk be diversified away by investing in both Citigroup and Sumber Tani 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 Sumber Tani into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Sumber Tani Agung, you can compare the effects of market volatilities on Citigroup and Sumber Tani 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 Sumber Tani. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Sumber Tani.
Diversification Opportunities for Citigroup and Sumber Tani
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Citigroup and Sumber is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Sumber Tani Agung in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sumber Tani Agung 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 Sumber Tani. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sumber Tani Agung has no effect on the direction of Citigroup i.e., Citigroup and Sumber Tani go up and down completely randomly.
Pair Corralation between Citigroup and Sumber Tani
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.15 times more return on investment than Sumber Tani. However, Citigroup is 1.15 times more volatile than Sumber Tani Agung. It trades about 0.1 of its potential returns per unit of risk. Sumber Tani Agung is currently generating about 0.0 per unit of risk. If you would invest 4,358 in Citigroup on October 24, 2024 and sell it today you would earn a total of 3,811 from holding Citigroup or generate 87.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 96.11% |
| Values | Daily Returns |
Citigroup vs. Sumber Tani Agung
Performance |
| Timeline |
| Citigroup |
| Sumber Tani Agung |
Citigroup and Sumber Tani Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Sumber Tani
The main advantage of trading using opposite Citigroup and Sumber Tani positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Sumber Tani 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 Sumber Tani will offset losses from the drop in Sumber Tani's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Sumber Tani vs. Triputra Agro Persada | Sumber Tani vs. Dayamitra Telekomunikasi PT | Sumber Tani vs. RMK Energy PT | Sumber Tani vs. Dharma Satya Nusantara |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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