Correlation Between Citigroup and AMEREN
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By analyzing existing cross correlation between Citigroup and AMEREN P 365, you can compare the effects of market volatilities on Citigroup and AMEREN 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 AMEREN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and AMEREN.
Diversification Opportunities for Citigroup and AMEREN
Very good diversification
The 3 months correlation between Citigroup and AMEREN is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and AMEREN P 365 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMEREN P 365 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 AMEREN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMEREN P 365 has no effect on the direction of Citigroup i.e., Citigroup and AMEREN go up and down completely randomly.
Pair Corralation between Citigroup and AMEREN
Taking into account the 90-day investment horizon Citigroup is expected to generate 3.17 times more return on investment than AMEREN. However, Citigroup is 3.17 times more volatile than AMEREN P 365. It trades about 0.07 of its potential returns per unit of risk. AMEREN P 365 is currently generating about 0.02 per unit of risk. If you would invest 4,117 in Citigroup on August 28, 2024 and sell it today you would earn a total of 2,958 from holding Citigroup or generate 71.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 52.32% |
| Values | Daily Returns |
Citigroup vs. AMEREN P 365
Performance |
| Timeline |
| Citigroup |
| AMEREN P 365 |
Citigroup and AMEREN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and AMEREN
The main advantage of trading using opposite Citigroup and AMEREN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, AMEREN 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 AMEREN will offset losses from the drop in AMEREN's long position.| Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal | Citigroup vs. Bank of Nova |
| AMEREN vs. AEP TEX INC | AMEREN vs. US BANK NATIONAL | AMEREN vs. Dupont De Nemours | AMEREN vs. The Travelers Companies |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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