Correlation Between Citigroup and TSS, Common
Can any of the company-specific risk be diversified away by investing in both Citigroup and TSS, Common 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 TSS, Common into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and TSS, Common Stock, you can compare the effects of market volatilities on Citigroup and TSS, Common 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 TSS, Common. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and TSS, Common.
Diversification Opportunities for Citigroup and TSS, Common
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Citigroup and TSS, is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and TSS, Common Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TSS, Common Stock 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 TSS, Common. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TSS, Common Stock has no effect on the direction of Citigroup i.e., Citigroup and TSS, Common go up and down completely randomly.
Pair Corralation between Citigroup and TSS, Common
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.28 times more return on investment than TSS, Common. However, Citigroup is 3.62 times less risky than TSS, Common. It trades about 0.07 of its potential returns per unit of risk. TSS, Common Stock is currently generating about -0.01 per unit of risk. If you would invest 4,360 in Citigroup on August 28, 2024 and sell it today you would earn a total of 2,715 from holding Citigroup or generate 62.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 28.57% |
| Values | Daily Returns |
Citigroup vs. TSS, Common Stock
Performance |
| Timeline |
| Citigroup |
| TSS, Common Stock |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and TSS, Common Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and TSS, Common
The main advantage of trading using opposite Citigroup and TSS, Common positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, TSS, Common 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 TSS, Common will offset losses from the drop in TSS, Common's long position.The idea behind Citigroup and TSS, Common Stock pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| TSS, Common vs. Atos SE | TSS, Common vs. Deveron Corp | TSS, Common vs. Appen Limited | TSS, Common vs. Atos Origin SA |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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