Correlation Between Citigroup and Saat Conservative
Can any of the company-specific risk be diversified away by investing in both Citigroup and Saat Conservative 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 Saat Conservative into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Saat Servative Strategy, you can compare the effects of market volatilities on Citigroup and Saat Conservative 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 Saat Conservative. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Saat Conservative.
Diversification Opportunities for Citigroup and Saat Conservative
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Citigroup and Saat is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Saat Servative Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saat Servative Strategy 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 Saat Conservative. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saat Servative Strategy has no effect on the direction of Citigroup i.e., Citigroup and Saat Conservative go up and down completely randomly.
Pair Corralation between Citigroup and Saat Conservative
Taking into account the 90-day investment horizon Citigroup is expected to generate 12.86 times more return on investment than Saat Conservative. However, Citigroup is 12.86 times more volatile than Saat Servative Strategy. It trades about 0.25 of its potential returns per unit of risk. Saat Servative Strategy is currently generating about 0.11 per unit of risk. If you would invest 6,360 in Citigroup on August 28, 2024 and sell it today you would earn a total of 715.00 from holding Citigroup or generate 11.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Saat Servative Strategy
Performance |
| Timeline |
| Citigroup |
| Saat Servative Strategy |
Citigroup and Saat Conservative Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Saat Conservative
The main advantage of trading using opposite Citigroup and Saat Conservative positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Saat Conservative 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 Saat Conservative will offset losses from the drop in Saat Conservative's long position.| Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal | Citigroup vs. Bank of Nova |
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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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