Correlation Between Citigroup and BZLNZ
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By analyzing existing cross correlation between Citigroup and BZLNZ 1 03 MAR 26, you can compare the effects of market volatilities on Citigroup and BZLNZ 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 BZLNZ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and BZLNZ.
Diversification Opportunities for Citigroup and BZLNZ
Very weak diversification
The 3 months correlation between Citigroup and BZLNZ is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and BZLNZ 1 03 MAR 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BZLNZ 1 03 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 BZLNZ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BZLNZ 1 03 has no effect on the direction of Citigroup i.e., Citigroup and BZLNZ go up and down completely randomly.
Pair Corralation between Citigroup and BZLNZ
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.58 times more return on investment than BZLNZ. However, Citigroup is 1.74 times less risky than BZLNZ. It trades about 0.21 of its potential returns per unit of risk. BZLNZ 1 03 MAR 26 is currently generating about -0.19 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 Together |
| Strength | Weak |
| Accuracy | 40.91% |
| Values | Daily Returns |
Citigroup vs. BZLNZ 1 03 MAR 26
Performance |
| Timeline |
| Citigroup |
| BZLNZ 1 03 |
Citigroup and BZLNZ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and BZLNZ
The main advantage of trading using opposite Citigroup and BZLNZ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, BZLNZ 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 BZLNZ will offset losses from the drop in BZLNZ's long position.The idea behind Citigroup and BZLNZ 1 03 MAR 26 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.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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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