Correlation Between Citigroup and 24703TAJ5
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By analyzing existing cross correlation between Citigroup and DELL INTERNATIONAL LLC, you can compare the effects of market volatilities on Citigroup and 24703TAJ5 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 24703TAJ5. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and 24703TAJ5.
Diversification Opportunities for Citigroup and 24703TAJ5
Excellent diversification
The 3 months correlation between Citigroup and 24703TAJ5 is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and DELL INTERNATIONAL LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DELL INTERNATIONAL LLC 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 24703TAJ5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DELL INTERNATIONAL LLC has no effect on the direction of Citigroup i.e., Citigroup and 24703TAJ5 go up and down completely randomly.
Pair Corralation between Citigroup and 24703TAJ5
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.38 times more return on investment than 24703TAJ5. However, Citigroup is 1.38 times more volatile than DELL INTERNATIONAL LLC. It trades about 0.21 of its potential returns per unit of risk. DELL INTERNATIONAL LLC is currently generating about -0.2 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 Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. DELL INTERNATIONAL LLC
Performance |
| Timeline |
| Citigroup |
| DELL INTERNATIONAL LLC |
Citigroup and 24703TAJ5 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and 24703TAJ5
The main advantage of trading using opposite Citigroup and 24703TAJ5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, 24703TAJ5 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 24703TAJ5 will offset losses from the drop in 24703TAJ5's long position.The idea behind Citigroup and DELL INTERNATIONAL LLC 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.| 24703TAJ5 vs. AEP TEX INC | 24703TAJ5 vs. US BANK NATIONAL | 24703TAJ5 vs. Eat Beyond Global | 24703TAJ5 vs. Charles Schwab 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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