Correlation Between Citigroup and Train Alliance
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By analyzing existing cross correlation between Citigroup and Train Alliance Sweden, you can compare the effects of market volatilities on Citigroup and Train Alliance 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 Train Alliance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Train Alliance.
Diversification Opportunities for Citigroup and Train Alliance
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Citigroup and Train is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Train Alliance Sweden in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Train Alliance Sweden 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 Train Alliance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Train Alliance Sweden has no effect on the direction of Citigroup i.e., Citigroup and Train Alliance go up and down completely randomly.
Pair Corralation between Citigroup and Train Alliance
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.8 times more return on investment than Train Alliance. However, Citigroup is 1.25 times less risky than Train Alliance. It trades about 0.1 of its potential returns per unit of risk. Train Alliance Sweden is currently generating about -0.03 per unit of risk. If you would invest 4,357 in Citigroup on August 26, 2024 and sell it today you would earn a total of 2,627 from holding Citigroup or generate 60.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.4% |
| Values | Daily Returns |
Citigroup vs. Train Alliance Sweden
Performance |
| Timeline |
| Citigroup |
| Train Alliance Sweden |
Citigroup and Train Alliance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Train Alliance
The main advantage of trading using opposite Citigroup and Train Alliance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Train Alliance 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 Train Alliance will offset losses from the drop in Train Alliance's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| Train Alliance vs. Bergman Beving AB | Train Alliance vs. FM Mattsson Mora | Train Alliance vs. Systemair AB | Train Alliance vs. Rejlers AB |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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