Correlation Between Citigroup and BLACK
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By analyzing existing cross correlation between Citigroup and BLACK HILLS P, you can compare the effects of market volatilities on Citigroup and BLACK 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 BLACK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and BLACK.
Diversification Opportunities for Citigroup and BLACK
Good diversification
The 3 months correlation between Citigroup and BLACK is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and BLACK HILLS P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BLACK HILLS P 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 BLACK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BLACK HILLS P has no effect on the direction of Citigroup i.e., Citigroup and BLACK go up and down completely randomly.
Pair Corralation between Citigroup and BLACK
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.49 times more return on investment than BLACK. However, Citigroup is 2.49 times more volatile than BLACK HILLS P. It trades about 0.07 of its potential returns per unit of risk. BLACK HILLS P is currently generating about 0.0 per unit of risk. If you would invest 4,218 in Citigroup on September 2, 2024 and sell it today you would earn a total of 2,869 from holding Citigroup or generate 68.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 61.09% |
| Values | Daily Returns |
Citigroup vs. BLACK HILLS P
Performance |
| Timeline |
| Citigroup |
| BLACK HILLS P |
Citigroup and BLACK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and BLACK
The main advantage of trading using opposite Citigroup and BLACK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, BLACK 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 BLACK will offset losses from the drop in BLACK's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| BLACK vs. Codexis | BLACK vs. Hudson Technologies | BLACK vs. Chart Industries | BLACK vs. Highway Holdings Limited |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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