Correlation Between Citigroup and Telo Genomics
Can any of the company-specific risk be diversified away by investing in both Citigroup and Telo Genomics 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 Telo Genomics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Telo Genomics Corp, you can compare the effects of market volatilities on Citigroup and Telo Genomics 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 Telo Genomics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Telo Genomics.
Diversification Opportunities for Citigroup and Telo Genomics
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Citigroup and Telo is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Telo Genomics Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Telo Genomics Corp 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 Telo Genomics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Telo Genomics Corp has no effect on the direction of Citigroup i.e., Citigroup and Telo Genomics go up and down completely randomly.
Pair Corralation between Citigroup and Telo Genomics
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.37 times more return on investment than Telo Genomics. However, Citigroup is 2.67 times less risky than Telo Genomics. It trades about 0.29 of its potential returns per unit of risk. Telo Genomics Corp is currently generating about -0.11 per unit of risk. If you would invest 6,122 in Citigroup on August 26, 2024 and sell it today you would earn a total of 862.00 from holding Citigroup or generate 14.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Telo Genomics Corp
Performance |
| Timeline |
| Citigroup |
| Telo Genomics Corp |
Citigroup and Telo Genomics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Telo Genomics
The main advantage of trading using opposite Citigroup and Telo Genomics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Telo Genomics 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 Telo Genomics will offset losses from the drop in Telo Genomics' long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| Telo Genomics vs. Telo Genomics Corp | Telo Genomics vs. Hemostemix | Telo Genomics vs. Nubeva Technologies | Telo Genomics vs. RepliCel Life Sciences |
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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