Correlation Between Citigroup and Syrah Resources
Can any of the company-specific risk be diversified away by investing in both Citigroup and Syrah Resources 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 Syrah Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Syrah Resources, you can compare the effects of market volatilities on Citigroup and Syrah Resources 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 Syrah Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Syrah Resources.
Diversification Opportunities for Citigroup and Syrah Resources
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Citigroup and Syrah is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Syrah Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Syrah Resources 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 Syrah Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Syrah Resources has no effect on the direction of Citigroup i.e., Citigroup and Syrah Resources go up and down completely randomly.
Pair Corralation between Citigroup and Syrah Resources
Taking into account the 90-day investment horizon Citigroup is expected to under-perform the Syrah Resources. But the stock apears to be less risky and, when comparing its historical volatility, Citigroup is 1.95 times less risky than Syrah Resources. The stock trades about -0.04 of its potential returns per unit of risk. The Syrah Resources is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 23.00 in Syrah Resources on November 28, 2024 and sell it today you would earn a total of 0.00 from holding Syrah Resources or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Syrah Resources
Performance |
| Timeline |
| Citigroup |
| Syrah Resources |
Citigroup and Syrah Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Syrah Resources
The main advantage of trading using opposite Citigroup and Syrah Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Syrah Resources 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 Syrah Resources will offset losses from the drop in Syrah Resources' long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Syrah Resources vs. Resolute Mining | Syrah Resources vs. Evolution Mining | Syrah Resources vs. Auctus Alternative Investments | Syrah Resources vs. Pinnacle Investment Management |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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