Correlation Between Citigroup and 06406FAC7
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By analyzing existing cross correlation between Citigroup and BANK NEW YORK, you can compare the effects of market volatilities on Citigroup and 06406FAC7 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 06406FAC7. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and 06406FAC7.
Diversification Opportunities for Citigroup and 06406FAC7
Excellent diversification
The 3 months correlation between Citigroup and 06406FAC7 is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and BANK NEW YORK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANK NEW YORK 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 06406FAC7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BANK NEW YORK has no effect on the direction of Citigroup i.e., Citigroup and 06406FAC7 go up and down completely randomly.
Pair Corralation between Citigroup and 06406FAC7
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.37 times more return on investment than 06406FAC7. However, Citigroup is 1.37 times more volatile than BANK NEW YORK. It trades about 0.21 of its potential returns per unit of risk. BANK NEW YORK is currently generating about -0.01 per unit of risk. 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 | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. BANK NEW YORK
Performance |
| Timeline |
| Citigroup |
| BANK NEW YORK |
Citigroup and 06406FAC7 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and 06406FAC7
The main advantage of trading using opposite Citigroup and 06406FAC7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, 06406FAC7 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 06406FAC7 will offset losses from the drop in 06406FAC7's long position.The idea behind Citigroup and BANK NEW YORK pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 06406FAC7 vs. RBC Bearings Incorporated | 06406FAC7 vs. EvoAir Holdings | 06406FAC7 vs. Lincoln Electric Holdings | 06406FAC7 vs. Vera Bradley |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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