Correlation Between Citigroup and Tcr2 Therapeutics
Can any of the company-specific risk be diversified away by investing in both Citigroup and Tcr2 Therapeutics 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 Tcr2 Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Tcr2 Therapeutics, you can compare the effects of market volatilities on Citigroup and Tcr2 Therapeutics 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 Tcr2 Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Tcr2 Therapeutics.
Diversification Opportunities for Citigroup and Tcr2 Therapeutics
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Citigroup and Tcr2 is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Tcr2 Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tcr2 Therapeutics 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 Tcr2 Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tcr2 Therapeutics has no effect on the direction of Citigroup i.e., Citigroup and Tcr2 Therapeutics go up and down completely randomly.
Pair Corralation between Citigroup and Tcr2 Therapeutics
If you would invest 4,325 in Citigroup on August 24, 2024 and sell it today you would earn a total of 2,690 from holding Citigroup or generate 62.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 0.4% |
| Values | Daily Returns |
Citigroup vs. Tcr2 Therapeutics
Performance |
| Timeline |
| Citigroup |
| Tcr2 Therapeutics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Tcr2 Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Tcr2 Therapeutics
The main advantage of trading using opposite Citigroup and Tcr2 Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Tcr2 Therapeutics 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 Tcr2 Therapeutics will offset losses from the drop in Tcr2 Therapeutics' long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Tcr2 Therapeutics vs. Affimed NV | Tcr2 Therapeutics vs. Pieris Pharmaceuticals | Tcr2 Therapeutics vs. ADC Therapeutics SA | Tcr2 Therapeutics vs. Agenus Inc |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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