Correlation Between Citigroup and TTM Technologies
Can any of the company-specific risk be diversified away by investing in both Citigroup and TTM Technologies 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 TTM Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and TTM Technologies, you can compare the effects of market volatilities on Citigroup and TTM Technologies 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 TTM Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and TTM Technologies.
Diversification Opportunities for Citigroup and TTM Technologies
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Citigroup and TTM is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and TTM Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TTM Technologies 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 TTM Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TTM Technologies has no effect on the direction of Citigroup i.e., Citigroup and TTM Technologies go up and down completely randomly.
Pair Corralation between Citigroup and TTM Technologies
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.63 times more return on investment than TTM Technologies. However, Citigroup is 1.58 times less risky than TTM Technologies. It trades about 0.22 of its potential returns per unit of risk. TTM Technologies is currently generating about -0.02 per unit of risk. If you would invest 6,980 in Citigroup on September 12, 2024 and sell it today you would earn a total of 270.00 from holding Citigroup or generate 3.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Citigroup vs. TTM Technologies
Performance |
| Timeline |
| Citigroup |
| TTM Technologies |
Citigroup and TTM Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and TTM Technologies
The main advantage of trading using opposite Citigroup and TTM Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, TTM Technologies 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 TTM Technologies will offset losses from the drop in TTM Technologies' long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| TTM Technologies vs. Benchmark Electronics | TTM Technologies vs. Meiko Electronics Co | TTM Technologies vs. Superior Plus Corp | TTM Technologies vs. SIVERS SEMICONDUCTORS 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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