Correlation Between Citigroup and Tipco Foods
Can any of the company-specific risk be diversified away by investing in both Citigroup and Tipco Foods 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 Tipco Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Tipco Foods Public, you can compare the effects of market volatilities on Citigroup and Tipco Foods 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 Tipco Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Tipco Foods.
Diversification Opportunities for Citigroup and Tipco Foods
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Citigroup and Tipco is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Tipco Foods Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tipco Foods Public 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 Tipco Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tipco Foods Public has no effect on the direction of Citigroup i.e., Citigroup and Tipco Foods go up and down completely randomly.
Pair Corralation between Citigroup and Tipco Foods
Taking into account the 90-day investment horizon Citigroup is expected to generate 5.21 times more return on investment than Tipco Foods. However, Citigroup is 5.21 times more volatile than Tipco Foods Public. It trades about 0.2 of its potential returns per unit of risk. Tipco Foods Public is currently generating about 0.0 per unit of risk. If you would invest 6,412 in Citigroup on August 30, 2024 and sell it today you would earn a total of 604.00 from holding Citigroup or generate 9.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Citigroup vs. Tipco Foods Public
Performance |
| Timeline |
| Citigroup |
| Tipco Foods Public |
Citigroup and Tipco Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Tipco Foods
The main advantage of trading using opposite Citigroup and Tipco Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Tipco Foods 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 Tipco Foods will offset losses from the drop in Tipco Foods' long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Tipco Foods vs. Tipco Asphalt Public | Tipco Foods vs. Thai Vegetable Oil | Tipco Foods vs. Thai Union Group | Tipco Foods vs. TISCO Financial Group |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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