Correlation Between Citigroup and 260543CG6
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By analyzing existing cross correlation between Citigroup and DOW CHEM 4375, you can compare the effects of market volatilities on Citigroup and 260543CG6 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 260543CG6. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and 260543CG6.
Diversification Opportunities for Citigroup and 260543CG6
Pay attention - limited upside
The 3 months correlation between Citigroup and 260543CG6 is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and DOW CHEM 4375 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DOW CHEM 4375 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 260543CG6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DOW CHEM 4375 has no effect on the direction of Citigroup i.e., Citigroup and 260543CG6 go up and down completely randomly.
Pair Corralation between Citigroup and 260543CG6
Taking into account the 90-day investment horizon Citigroup is expected to generate 32.39 times less return on investment than 260543CG6. But when comparing it to its historical volatility, Citigroup is 40.24 times less risky than 260543CG6. It trades about 0.07 of its potential returns per unit of risk. DOW CHEM 4375 is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 8,688 in DOW CHEM 4375 on August 30, 2024 and sell it today you would earn a total of 111.00 from holding DOW CHEM 4375 or generate 1.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 93.55% |
| Values | Daily Returns |
Citigroup vs. DOW CHEM 4375
Performance |
| Timeline |
| Citigroup |
| DOW CHEM 4375 |
Citigroup and 260543CG6 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and 260543CG6
The main advantage of trading using opposite Citigroup and 260543CG6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, 260543CG6 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 260543CG6 will offset losses from the drop in 260543CG6's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| 260543CG6 vs. AEP TEX INC | 260543CG6 vs. US BANK NATIONAL | 260543CG6 vs. Nasdaq Inc | 260543CG6 vs. Vertiv Holdings Co |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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