Correlation Between Citigroup and Societe De
Can any of the company-specific risk be diversified away by investing in both Citigroup and Societe De 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 Societe De into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Societe de Tayninh, you can compare the effects of market volatilities on Citigroup and Societe De 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 Societe De. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Societe De.
Diversification Opportunities for Citigroup and Societe De
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Citigroup and Societe is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Societe de Tayninh in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Societe de Tayninh 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 Societe De. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Societe de Tayninh has no effect on the direction of Citigroup i.e., Citigroup and Societe De go up and down completely randomly.
Pair Corralation between Citigroup and Societe De
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.35 times more return on investment than Societe De. However, Citigroup is 2.89 times less risky than Societe De. It trades about 0.26 of its potential returns per unit of risk. Societe de Tayninh is currently generating about 0.03 per unit of risk. If you would invest 6,361 in Citigroup on September 1, 2024 and sell it today you would earn a total of 726.00 from holding Citigroup or generate 11.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Citigroup vs. Societe de Tayninh
Performance |
| Timeline |
| Citigroup |
| Societe de Tayninh |
Citigroup and Societe De Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Societe De
The main advantage of trading using opposite Citigroup and Societe De positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Societe De 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 Societe De will offset losses from the drop in Societe De's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Societe De vs. Stef SA | Societe De vs. NRJ Group | Societe De vs. Savencia SA | Societe De vs. ABC arbitrage SA |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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