Correlation Between Citigroup and CONSUMERS
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By analyzing existing cross correlation between Citigroup and CONSUMERS ENERGY 395, you can compare the effects of market volatilities on Citigroup and CONSUMERS 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 CONSUMERS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and CONSUMERS.
Diversification Opportunities for Citigroup and CONSUMERS
Very good diversification
The 3 months correlation between Citigroup and CONSUMERS is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and CONSUMERS ENERGY 395 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CONSUMERS ENERGY 5 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 CONSUMERS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CONSUMERS ENERGY 5 has no effect on the direction of Citigroup i.e., Citigroup and CONSUMERS go up and down completely randomly.
Pair Corralation between Citigroup and CONSUMERS
Taking into account the 90-day investment horizon Citigroup is expected to under-perform the CONSUMERS. In addition to that, Citigroup is 1.65 times more volatile than CONSUMERS ENERGY 395. It trades about -0.08 of its total potential returns per unit of risk. CONSUMERS ENERGY 395 is currently generating about 0.05 per unit of volatility. If you would invest 7,897 in CONSUMERS ENERGY 395 on November 28, 2024 and sell it today you would earn a total of 32.00 from holding CONSUMERS ENERGY 395 or generate 0.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 42.86% |
| Values | Daily Returns |
Citigroup vs. CONSUMERS ENERGY 395
Performance |
| Timeline |
| Citigroup |
| CONSUMERS ENERGY 5 |
Citigroup and CONSUMERS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and CONSUMERS
The main advantage of trading using opposite Citigroup and CONSUMERS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, CONSUMERS 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 CONSUMERS will offset losses from the drop in CONSUMERS's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| CONSUMERS vs. Altria Group | CONSUMERS vs. ZhongAn Online P | CONSUMERS vs. 51Talk Online Education | CONSUMERS vs. Stagwell |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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