Correlation Between Citigroup and Americas Gold
Can any of the company-specific risk be diversified away by investing in both Citigroup and Americas Gold 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 Americas Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Americas Gold and, you can compare the effects of market volatilities on Citigroup and Americas Gold 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 Americas Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Americas Gold.
Diversification Opportunities for Citigroup and Americas Gold
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Citigroup and Americas is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Americas Gold and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Americas Gold 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 Americas Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Americas Gold has no effect on the direction of Citigroup i.e., Citigroup and Americas Gold go up and down completely randomly.
Pair Corralation between Citigroup and Americas Gold
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.23 times more return on investment than Americas Gold. However, Citigroup is 4.27 times less risky than Americas Gold. It trades about -0.03 of its potential returns per unit of risk. Americas Gold and is currently generating about -0.05 per unit of risk. If you would invest 6,984 in Citigroup on September 23, 2024 and sell it today you would lose (65.00) from holding Citigroup or give up 0.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Citigroup vs. Americas Gold and
Performance |
| Timeline |
| Citigroup |
| Americas Gold |
Citigroup and Americas Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Americas Gold
The main advantage of trading using opposite Citigroup and Americas Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Americas Gold 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 Americas Gold will offset losses from the drop in Americas Gold's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. Canadian Imperial Bank | Citigroup vs. Bank of Montreal |
| Americas Gold vs. Pan American Silver | Americas Gold vs. First Majestic Silver | Americas Gold vs. MAG Silver Corp | Americas Gold vs. Silvercorp Metals |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |