Correlation Between Citigroup and Tinka Resources
Can any of the company-specific risk be diversified away by investing in both Citigroup and Tinka Resources 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 Tinka Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Tinka Resources Limited, you can compare the effects of market volatilities on Citigroup and Tinka Resources 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 Tinka Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Tinka Resources.
Diversification Opportunities for Citigroup and Tinka Resources
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and Tinka is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Tinka Resources Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tinka Resources 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 Tinka Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tinka Resources has no effect on the direction of Citigroup i.e., Citigroup and Tinka Resources go up and down completely randomly.
Pair Corralation between Citigroup and Tinka Resources
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.35 times more return on investment than Tinka Resources. However, Citigroup is 2.85 times less risky than Tinka Resources. It trades about 0.07 of its potential returns per unit of risk. Tinka Resources Limited is currently generating about 0.01 per unit of risk. If you would invest 4,118 in Citigroup on August 29, 2024 and sell it today you would earn a total of 2,857 from holding Citigroup or generate 69.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Citigroup vs. Tinka Resources Limited
Performance |
| Timeline |
| Citigroup |
| Tinka Resources |
Citigroup and Tinka Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Tinka Resources
The main advantage of trading using opposite Citigroup and Tinka Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Tinka Resources 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 Tinka Resources will offset losses from the drop in Tinka Resources' long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Tinka Resources vs. Regulus Resources | Tinka Resources vs. Panoro Minerals | Tinka Resources vs. Triumph Gold Corp | Tinka Resources vs. Unigold |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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