Correlation Between Citigroup and AMERICAN
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By analyzing existing cross correlation between Citigroup and AMERICAN WTR CAP, you can compare the effects of market volatilities on Citigroup and AMERICAN 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 AMERICAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and AMERICAN.
Diversification Opportunities for Citigroup and AMERICAN
Excellent diversification
The 3 months correlation between Citigroup and AMERICAN is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and AMERICAN WTR CAP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMERICAN WTR CAP 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 AMERICAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMERICAN WTR CAP has no effect on the direction of Citigroup i.e., Citigroup and AMERICAN go up and down completely randomly.
Pair Corralation between Citigroup and AMERICAN
Taking into account the 90-day investment horizon Citigroup is expected to generate 5.19 times more return on investment than AMERICAN. However, Citigroup is 5.19 times more volatile than AMERICAN WTR CAP. It trades about 0.11 of its potential returns per unit of risk. AMERICAN WTR CAP is currently generating about -0.01 per unit of risk. If you would invest 5,284 in Citigroup on November 4, 2024 and sell it today you would earn a total of 2,859 from holding Citigroup or generate 54.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.38% |
| Values | Daily Returns |
Citigroup vs. AMERICAN WTR CAP
Performance |
| Timeline |
| Citigroup |
| AMERICAN WTR CAP |
Citigroup and AMERICAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and AMERICAN
The main advantage of trading using opposite Citigroup and AMERICAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, AMERICAN 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 AMERICAN will offset losses from the drop in AMERICAN's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| AMERICAN vs. Deluxe | AMERICAN vs. Vasta Platform | AMERICAN vs. Royalty Management Holding | AMERICAN vs. Gfl Environmental 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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