Correlation Between Citigroup and Ubs Sustainable
Can any of the company-specific risk be diversified away by investing in both Citigroup and Ubs Sustainable 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 Ubs Sustainable into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Ubs Sustainable Development, you can compare the effects of market volatilities on Citigroup and Ubs Sustainable 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 Ubs Sustainable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Ubs Sustainable.
Diversification Opportunities for Citigroup and Ubs Sustainable
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Citigroup and Ubs is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Ubs Sustainable Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ubs Sustainable Deve 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 Ubs Sustainable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ubs Sustainable Deve has no effect on the direction of Citigroup i.e., Citigroup and Ubs Sustainable go up and down completely randomly.
Pair Corralation between Citigroup and Ubs Sustainable
Taking into account the 90-day investment horizon Citigroup is expected to under-perform the Ubs Sustainable. In addition to that, Citigroup is 7.32 times more volatile than Ubs Sustainable Development. It trades about 0.0 of its total potential returns per unit of risk. Ubs Sustainable Development is currently generating about 0.3 per unit of volatility. If you would invest 934.00 in Ubs Sustainable Development on November 29, 2024 and sell it today you would earn a total of 13.00 from holding Ubs Sustainable Development or generate 1.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Ubs Sustainable Development
Performance |
| Timeline |
| Citigroup |
| Ubs Sustainable Deve |
Citigroup and Ubs Sustainable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Ubs Sustainable
The main advantage of trading using opposite Citigroup and Ubs Sustainable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Ubs Sustainable 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 Ubs Sustainable will offset losses from the drop in Ubs Sustainable's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Ubs Sustainable vs. Vanguard Reit Index | Ubs Sustainable vs. Fidelity Real Estate | Ubs Sustainable vs. Nexpoint Real Estate | Ubs Sustainable vs. Prudential Real Estate |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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