Correlation Between Citigroup and Tng Investment
Can any of the company-specific risk be diversified away by investing in both Citigroup and Tng Investment 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 Tng Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Tng Investment And, you can compare the effects of market volatilities on Citigroup and Tng Investment 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 Tng Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Tng Investment.
Diversification Opportunities for Citigroup and Tng Investment
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and Tng is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Tng Investment And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tng Investment And 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 Tng Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tng Investment And has no effect on the direction of Citigroup i.e., Citigroup and Tng Investment go up and down completely randomly.
Pair Corralation between Citigroup and Tng Investment
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.76 times more return on investment than Tng Investment. However, Citigroup is 1.32 times less risky than Tng Investment. It trades about 0.15 of its potential returns per unit of risk. Tng Investment And is currently generating about 0.09 per unit of risk. If you would invest 3,705 in Citigroup on August 25, 2024 and sell it today you would earn a total of 3,279 from holding Citigroup or generate 88.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.89% |
| Values | Daily Returns |
Citigroup vs. Tng Investment And
Performance |
| Timeline |
| Citigroup |
| Tng Investment And |
Citigroup and Tng Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Tng Investment
The main advantage of trading using opposite Citigroup and Tng Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Tng Investment 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 Tng Investment will offset losses from the drop in Tng Investment's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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