Correlation Between Citigroup and ENTERPRISE
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By analyzing existing cross correlation between Citigroup and ENTERPRISE PRODS OPER, you can compare the effects of market volatilities on Citigroup and ENTERPRISE 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 ENTERPRISE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and ENTERPRISE.
Diversification Opportunities for Citigroup and ENTERPRISE
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and ENTERPRISE is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and ENTERPRISE PRODS OPER in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENTERPRISE PRODS OPER 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 ENTERPRISE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENTERPRISE PRODS OPER has no effect on the direction of Citigroup i.e., Citigroup and ENTERPRISE go up and down completely randomly.
Pair Corralation between Citigroup and ENTERPRISE
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.4 times more return on investment than ENTERPRISE. However, Citigroup is 2.4 times more volatile than ENTERPRISE PRODS OPER. It trades about 0.29 of its potential returns per unit of risk. ENTERPRISE PRODS OPER is currently generating about 0.09 per unit of risk. If you would invest 6,122 in Citigroup on August 26, 2024 and sell it today you would earn a total of 862.00 from holding Citigroup or generate 14.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. ENTERPRISE PRODS OPER
Performance |
| Timeline |
| Citigroup |
| ENTERPRISE PRODS OPER |
Citigroup and ENTERPRISE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and ENTERPRISE
The main advantage of trading using opposite Citigroup and ENTERPRISE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, ENTERPRISE 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 ENTERPRISE will offset losses from the drop in ENTERPRISE's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| ENTERPRISE vs. The Coca Cola | ENTERPRISE vs. JPMorgan Chase Co | ENTERPRISE vs. Dupont De Nemours | ENTERPRISE vs. Alcoa 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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