Correlation Between Citigroup and Triton Development
Can any of the company-specific risk be diversified away by investing in both Citigroup and Triton Development 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 Triton Development into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Triton Development SA, you can compare the effects of market volatilities on Citigroup and Triton Development 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 Triton Development. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Triton Development.
Diversification Opportunities for Citigroup and Triton Development
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Citigroup and Triton is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Triton Development SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Triton Development 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 Triton Development. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Triton Development has no effect on the direction of Citigroup i.e., Citigroup and Triton Development go up and down completely randomly.
Pair Corralation between Citigroup and Triton Development
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.57 times more return on investment than Triton Development. However, Citigroup is 1.74 times less risky than Triton Development. It trades about 0.21 of its potential returns per unit of risk. Triton Development SA is currently generating about -0.12 per unit of risk. If you would invest 6,412 in Citigroup on August 30, 2024 and sell it today you would earn a total of 604.00 from holding Citigroup or generate 9.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Citigroup vs. Triton Development SA
Performance |
| Timeline |
| Citigroup |
| Triton Development |
Citigroup and Triton Development Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Triton Development
The main advantage of trading using opposite Citigroup and Triton Development positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Triton Development 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 Triton Development will offset losses from the drop in Triton Development's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Triton Development vs. Banco Santander SA | Triton Development vs. UniCredit SpA | Triton Development vs. CEZ as | Triton Development vs. Polski Koncern Naftowy |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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