Correlation Between Citigroup and Total SA
Can any of the company-specific risk be diversified away by investing in both Citigroup and Total SA 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 Total SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Total SA, you can compare the effects of market volatilities on Citigroup and Total SA 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 Total SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Total SA.
Diversification Opportunities for Citigroup and Total SA
Pay attention - limited upside
The 3 months correlation between Citigroup and Total is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Total SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Total SA 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 Total SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Total SA has no effect on the direction of Citigroup i.e., Citigroup and Total SA go up and down completely randomly.
Pair Corralation between Citigroup and Total SA
If you would invest 4,684 in Citigroup on November 27, 2024 and sell it today you would earn a total of 3,005 from holding Citigroup or generate 64.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Citigroup vs. Total SA
Performance |
| Timeline |
| Citigroup |
| Total SA |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Citigroup and Total SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Total SA
The main advantage of trading using opposite Citigroup and Total SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Total SA 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 Total SA will offset losses from the drop in Total SA's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Total SA vs. Infineon Technologies AG | Total SA vs. Deutsche Bank AG | Total SA vs. NordTelekom Telecommunications Service | Total SA vs. OTP Bank Nyrt |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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