Correlation Between Citigroup and United Consortium
Can any of the company-specific risk be diversified away by investing in both Citigroup and United Consortium 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 United Consortium into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and United Consortium, you can compare the effects of market volatilities on Citigroup and United Consortium 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 United Consortium. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and United Consortium.
Diversification Opportunities for Citigroup and United Consortium
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and United is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and United Consortium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Consortium 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 United Consortium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Consortium has no effect on the direction of Citigroup i.e., Citigroup and United Consortium go up and down completely randomly.
Pair Corralation between Citigroup and United Consortium
If you would invest 6,360 in Citigroup on August 29, 2024 and sell it today you would earn a total of 615.00 from holding Citigroup or generate 9.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Citigroup vs. United Consortium
Performance |
| Timeline |
| Citigroup |
| United Consortium |
Citigroup and United Consortium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and United Consortium
The main advantage of trading using opposite Citigroup and United Consortium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, United Consortium 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 United Consortium will offset losses from the drop in United Consortium's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| United Consortium vs. Morgan Stanley | United Consortium vs. Goldman Sachs Group | United Consortium vs. Riot Blockchain | United Consortium vs. Marathon Digital Holdings |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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