Correlation Between Citigroup and Thermal Energy
Can any of the company-specific risk be diversified away by investing in both Citigroup and Thermal Energy 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 Thermal Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Thermal Energy International, you can compare the effects of market volatilities on Citigroup and Thermal Energy 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 Thermal Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Thermal Energy.
Diversification Opportunities for Citigroup and Thermal Energy
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Thermal is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Thermal Energy International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thermal Energy Inter 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 Thermal Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thermal Energy Inter has no effect on the direction of Citigroup i.e., Citigroup and Thermal Energy go up and down completely randomly.
Pair Corralation between Citigroup and Thermal Energy
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.16 times more return on investment than Thermal Energy. However, Citigroup is 6.12 times less risky than Thermal Energy. It trades about 0.18 of its potential returns per unit of risk. Thermal Energy International is currently generating about -0.04 per unit of risk. If you would invest 6,980 in Citigroup on September 12, 2024 and sell it today you would earn a total of 224.00 from holding Citigroup or generate 3.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Citigroup vs. Thermal Energy International
Performance |
| Timeline |
| Citigroup |
| Thermal Energy Inter |
Citigroup and Thermal Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Thermal Energy
The main advantage of trading using opposite Citigroup and Thermal Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Thermal Energy 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 Thermal Energy will offset losses from the drop in Thermal Energy's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Thermal Energy vs. QYOU Media | Thermal Energy vs. LeanLife Health | Thermal Energy vs. Prime Meridian Holding | Thermal Energy vs. TrackX Holdings |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |