Correlation Between Citigroup and CREDIT
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By analyzing existing cross correlation between Citigroup and CREDIT SUISSE AG, you can compare the effects of market volatilities on Citigroup and CREDIT 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 CREDIT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and CREDIT.
Diversification Opportunities for Citigroup and CREDIT
Modest diversification
The 3 months correlation between Citigroup and CREDIT is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and CREDIT SUISSE AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CREDIT SUISSE AG 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 CREDIT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CREDIT SUISSE AG has no effect on the direction of Citigroup i.e., Citigroup and CREDIT go up and down completely randomly.
Pair Corralation between Citigroup and CREDIT
Taking into account the 90-day investment horizon Citigroup is expected to generate 23.55 times less return on investment than CREDIT. But when comparing it to its historical volatility, Citigroup is 37.28 times less risky than CREDIT. It trades about 0.08 of its potential returns per unit of risk. CREDIT SUISSE AG is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 8,596 in CREDIT SUISSE AG on September 2, 2024 and sell it today you would earn a total of 854.00 from holding CREDIT SUISSE AG or generate 9.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 79.3% |
| Values | Daily Returns |
Citigroup vs. CREDIT SUISSE AG
Performance |
| Timeline |
| Citigroup |
| CREDIT SUISSE AG |
Citigroup and CREDIT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and CREDIT
The main advantage of trading using opposite Citigroup and CREDIT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, CREDIT 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 CREDIT will offset losses from the drop in CREDIT's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| CREDIT vs. Cardinal Health | CREDIT vs. Kura Sushi USA | CREDIT vs. Sweetgreen | CREDIT vs. Ryman Hospitality Properties |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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