Correlation Between Citigroup and 10X Genomics
Can any of the company-specific risk be diversified away by investing in both Citigroup and 10X Genomics 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 10X Genomics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and 10X Genomics, you can compare the effects of market volatilities on Citigroup and 10X Genomics 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 10X Genomics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and 10X Genomics.
Diversification Opportunities for Citigroup and 10X Genomics
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and 10X is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and 10X Genomics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 10X Genomics 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 10X Genomics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 10X Genomics has no effect on the direction of Citigroup i.e., Citigroup and 10X Genomics go up and down completely randomly.
Pair Corralation between Citigroup and 10X Genomics
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.56 times more return on investment than 10X Genomics. However, Citigroup is 1.79 times less risky than 10X Genomics. It trades about 0.21 of its potential returns per unit of risk. 10X Genomics is currently generating about -0.06 per unit of risk. If you would invest 6,393 in Citigroup on August 31, 2024 and sell it today you would earn a total of 623.00 from holding Citigroup or generate 9.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. 10X Genomics
Performance |
| Timeline |
| Citigroup |
| 10X Genomics |
Citigroup and 10X Genomics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and 10X Genomics
The main advantage of trading using opposite Citigroup and 10X Genomics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, 10X Genomics 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 10X Genomics will offset losses from the drop in 10X Genomics' long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| 10X Genomics vs. Twist Bioscience Corp | 10X Genomics vs. Fate Therapeutics | 10X Genomics vs. Beam Therapeutics | 10X Genomics vs. Veracyte |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |