Correlation Between Citigroup and PT Buana
Can any of the company-specific risk be diversified away by investing in both Citigroup and PT Buana 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 PT Buana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and PT Buana Artha, you can compare the effects of market volatilities on Citigroup and PT Buana 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 PT Buana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and PT Buana.
Diversification Opportunities for Citigroup and PT Buana
Pay attention - limited upside
The 3 months correlation between Citigroup and STAR is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and PT Buana Artha in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Buana Artha 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 PT Buana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Buana Artha has no effect on the direction of Citigroup i.e., Citigroup and PT Buana go up and down completely randomly.
Pair Corralation between Citigroup and PT Buana
If you would invest 6,235 in Citigroup on September 3, 2024 and sell it today you would earn a total of 852.00 from holding Citigroup or generate 13.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. PT Buana Artha
Performance |
| Timeline |
| Citigroup |
| PT Buana Artha |
Citigroup and PT Buana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and PT Buana
The main advantage of trading using opposite Citigroup and PT Buana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, PT Buana 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 PT Buana will offset losses from the drop in PT Buana's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| PT Buana vs. Trisula International Tbk | PT Buana vs. Ricky Putra Globalindo | PT Buana vs. Sunson Textile Manufacturer | PT Buana vs. Sejahteraraya Anugrahjaya Tbk |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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