Correlation Between Citigroup and Swedish Match
Can any of the company-specific risk be diversified away by investing in both Citigroup and Swedish Match 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 Swedish Match into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Swedish Match Ab, you can compare the effects of market volatilities on Citigroup and Swedish Match 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 Swedish Match. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Swedish Match.
Diversification Opportunities for Citigroup and Swedish Match
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Swedish is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Swedish Match Ab in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swedish Match Ab 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 Swedish Match. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swedish Match Ab has no effect on the direction of Citigroup i.e., Citigroup and Swedish Match go up and down completely randomly.
Pair Corralation between Citigroup and Swedish Match
If you would invest 4,025 in Citigroup on November 28, 2024 and sell it today you would earn a total of 3,789 from holding Citigroup or generate 94.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Citigroup vs. Swedish Match Ab
Performance |
| Timeline |
| Citigroup |
| Swedish Match Ab |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Citigroup and Swedish Match Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Swedish Match
The main advantage of trading using opposite Citigroup and Swedish Match positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Swedish Match 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 Swedish Match will offset losses from the drop in Swedish Match's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Swedish Match vs. PennantPark Investment | Swedish Match vs. Apartment Investment and | Swedish Match vs. Alternative Investment | Swedish Match vs. Southwest Gas 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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