Correlation Between Citigroup and Tifico Fiber
Can any of the company-specific risk be diversified away by investing in both Citigroup and Tifico Fiber 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 Tifico Fiber into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Tifico Fiber Indonesia, you can compare the effects of market volatilities on Citigroup and Tifico Fiber 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 Tifico Fiber. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Tifico Fiber.
Diversification Opportunities for Citigroup and Tifico Fiber
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Tifico is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Tifico Fiber Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tifico Fiber Indonesia 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 Tifico Fiber. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tifico Fiber Indonesia has no effect on the direction of Citigroup i.e., Citigroup and Tifico Fiber go up and down completely randomly.
Pair Corralation between Citigroup and Tifico Fiber
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.52 times more return on investment than Tifico Fiber. However, Citigroup is 1.52 times more volatile than Tifico Fiber Indonesia. It trades about 0.07 of its potential returns per unit of risk. Tifico Fiber Indonesia is currently generating about -0.01 per unit of risk. If you would invest 4,145 in Citigroup on August 27, 2024 and sell it today you would earn a total of 2,839 from holding Citigroup or generate 68.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.36% |
| Values | Daily Returns |
Citigroup vs. Tifico Fiber Indonesia
Performance |
| Timeline |
| Citigroup |
| Tifico Fiber Indonesia |
Citigroup and Tifico Fiber Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Tifico Fiber
The main advantage of trading using opposite Citigroup and Tifico Fiber positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Tifico Fiber 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 Tifico Fiber will offset losses from the drop in Tifico Fiber's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| Tifico Fiber vs. Sunson Textile Manufacturer | Tifico Fiber vs. Voksel Electric Tbk | Tifico Fiber vs. Ricky Putra Globalindo | Tifico Fiber vs. Supreme Cable Manufacturing |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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