Correlation Between Citigroup and Shattuck Labs
Can any of the company-specific risk be diversified away by investing in both Citigroup and Shattuck Labs 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 Shattuck Labs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Shattuck Labs, you can compare the effects of market volatilities on Citigroup and Shattuck Labs 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 Shattuck Labs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Shattuck Labs.
Diversification Opportunities for Citigroup and Shattuck Labs
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Citigroup and Shattuck is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Shattuck Labs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shattuck Labs 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 Shattuck Labs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shattuck Labs has no effect on the direction of Citigroup i.e., Citigroup and Shattuck Labs go up and down completely randomly.
Pair Corralation between Citigroup and Shattuck Labs
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.24 times more return on investment than Shattuck Labs. However, Citigroup is 4.12 times less risky than Shattuck Labs. It trades about 0.16 of its potential returns per unit of risk. Shattuck Labs is currently generating about -0.08 per unit of risk. If you would invest 6,092 in Citigroup on November 2, 2024 and sell it today you would earn a total of 2,094 from holding Citigroup or generate 34.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Shattuck Labs
Performance |
| Timeline |
| Citigroup |
| Shattuck Labs |
Citigroup and Shattuck Labs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Shattuck Labs
The main advantage of trading using opposite Citigroup and Shattuck Labs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Shattuck Labs 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 Shattuck Labs will offset losses from the drop in Shattuck Labs' long position.| Citigroup vs. Royal Bank of | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Canadian Imperial Bank |
| Shattuck Labs vs. C4 Therapeutics | Shattuck Labs vs. Prelude Therapeutics | Shattuck Labs vs. Monte Rosa Therapeutics | Shattuck Labs vs. Foghorn Therapeutics |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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