Correlation Between Citigroup and TC BioPharm
Can any of the company-specific risk be diversified away by investing in both Citigroup and TC BioPharm 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 TC BioPharm into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and TC BioPharm plc, you can compare the effects of market volatilities on Citigroup and TC BioPharm 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 TC BioPharm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and TC BioPharm.
Diversification Opportunities for Citigroup and TC BioPharm
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and TCBPW is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and TC BioPharm plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TC BioPharm plc 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 TC BioPharm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TC BioPharm plc has no effect on the direction of Citigroup i.e., Citigroup and TC BioPharm go up and down completely randomly.
Pair Corralation between Citigroup and TC BioPharm
Taking into account the 90-day investment horizon Citigroup is expected to generate 5.69 times less return on investment than TC BioPharm. But when comparing it to its historical volatility, Citigroup is 13.82 times less risky than TC BioPharm. It trades about 0.23 of its potential returns per unit of risk. TC BioPharm plc is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1.91 in TC BioPharm plc on August 27, 2024 and sell it today you would lose (0.31) from holding TC BioPharm plc or give up 16.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. TC BioPharm plc
Performance |
| Timeline |
| Citigroup |
| TC BioPharm plc |
Citigroup and TC BioPharm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and TC BioPharm
The main advantage of trading using opposite Citigroup and TC BioPharm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, TC BioPharm 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 TC BioPharm will offset losses from the drop in TC BioPharm's long position.| Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal | Citigroup vs. Bank of Nova |
| TC BioPharm vs. bioAffinity Technologies Warrant | TC BioPharm vs. American Rebel Holdings | TC BioPharm vs. Alvotech Warrant | TC BioPharm vs. Inspira Technologies Oxy |
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.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |