Correlation Between Citigroup and Steelcast
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By analyzing existing cross correlation between Citigroup and Steelcast Limited, you can compare the effects of market volatilities on Citigroup and Steelcast 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 Steelcast. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Steelcast.
Diversification Opportunities for Citigroup and Steelcast
Modest diversification
The 3 months correlation between Citigroup and Steelcast is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Steelcast Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Steelcast Limited 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 Steelcast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Steelcast Limited has no effect on the direction of Citigroup i.e., Citigroup and Steelcast go up and down completely randomly.
Pair Corralation between Citigroup and Steelcast
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.78 times more return on investment than Steelcast. However, Citigroup is 1.28 times less risky than Steelcast. It trades about 0.21 of its potential returns per unit of risk. Steelcast Limited is currently generating about 0.02 per unit of risk. If you would invest 6,412 in Citigroup on August 30, 2024 and sell it today you would earn a total of 604.00 from holding Citigroup or generate 9.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Citigroup vs. Steelcast Limited
Performance |
| Timeline |
| Citigroup |
| Steelcast Limited |
Citigroup and Steelcast Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Steelcast
The main advantage of trading using opposite Citigroup and Steelcast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Steelcast 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 Steelcast will offset losses from the drop in Steelcast's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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