Correlation Between Citigroup and ALPHABET
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By analyzing existing cross correlation between Citigroup and ALPHABET INC, you can compare the effects of market volatilities on Citigroup and ALPHABET 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 ALPHABET. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and ALPHABET.
Diversification Opportunities for Citigroup and ALPHABET
Excellent diversification
The 3 months correlation between Citigroup and ALPHABET is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and ALPHABET INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALPHABET INC 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 ALPHABET. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALPHABET INC has no effect on the direction of Citigroup i.e., Citigroup and ALPHABET go up and down completely randomly.
Pair Corralation between Citigroup and ALPHABET
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.08 times more return on investment than ALPHABET. However, Citigroup is 1.08 times more volatile than ALPHABET INC. It trades about 0.07 of its potential returns per unit of risk. ALPHABET INC is currently generating about -0.01 per unit of risk. If you would invest 4,145 in Citigroup on August 27, 2024 and sell it today you would earn a total of 2,839 from holding Citigroup or generate 68.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. ALPHABET INC
Performance |
| Timeline |
| Citigroup |
| ALPHABET INC |
Citigroup and ALPHABET Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and ALPHABET
The main advantage of trading using opposite Citigroup and ALPHABET positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, ALPHABET 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 ALPHABET will offset losses from the drop in ALPHABET's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| ALPHABET vs. The Mosaic | ALPHABET vs. The Coca Cola | ALPHABET vs. Treasury Wine Estates | ALPHABET vs. SNDL Inc |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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