Correlation Between Citigroup and 207597EH4
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By analyzing existing cross correlation between Citigroup and CONNECTICUT LT PWR, you can compare the effects of market volatilities on Citigroup and 207597EH4 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 207597EH4. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and 207597EH4.
Diversification Opportunities for Citigroup and 207597EH4
Modest diversification
The 3 months correlation between Citigroup and 207597EH4 is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and CONNECTICUT LT PWR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CONNECTICUT LT PWR 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 207597EH4. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CONNECTICUT LT PWR has no effect on the direction of Citigroup i.e., Citigroup and 207597EH4 go up and down completely randomly.
Pair Corralation between Citigroup and 207597EH4
Taking into account the 90-day investment horizon Citigroup is expected to generate 90.66 times less return on investment than 207597EH4. But when comparing it to its historical volatility, Citigroup is 67.33 times less risky than 207597EH4. It trades about 0.07 of its potential returns per unit of risk. CONNECTICUT LT PWR is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 8,957 in CONNECTICUT LT PWR on August 30, 2024 and sell it today you would lose (294.00) from holding CONNECTICUT LT PWR or give up 3.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 33.33% |
| Values | Daily Returns |
Citigroup vs. CONNECTICUT LT PWR
Performance |
| Timeline |
| Citigroup |
| CONNECTICUT LT PWR |
Citigroup and 207597EH4 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and 207597EH4
The main advantage of trading using opposite Citigroup and 207597EH4 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, 207597EH4 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 207597EH4 will offset losses from the drop in 207597EH4's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| 207597EH4 vs. AEP TEX INC | 207597EH4 vs. US BANK NATIONAL | 207597EH4 vs. Applied Blockchain | 207597EH4 vs. Neutra Corp |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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