Correlation Between Citigroup and FMGAU
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By analyzing existing cross correlation between Citigroup and FMGAU 6125 15 APR 32, you can compare the effects of market volatilities on Citigroup and FMGAU 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 FMGAU. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and FMGAU.
Diversification Opportunities for Citigroup and FMGAU
Very good diversification
The 3 months correlation between Citigroup and FMGAU is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and FMGAU 6125 15 APR 32 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FMGAU 6125 15 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 FMGAU. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FMGAU 6125 15 has no effect on the direction of Citigroup i.e., Citigroup and FMGAU go up and down completely randomly.
Pair Corralation between Citigroup and FMGAU
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.72 times more return on investment than FMGAU. However, Citigroup is 1.39 times less risky than FMGAU. It trades about 0.25 of its potential returns per unit of risk. FMGAU 6125 15 APR 32 is currently generating about 0.0 per unit of risk. If you would invest 6,360 in Citigroup on August 28, 2024 and sell it today you would earn a total of 715.00 from holding Citigroup or generate 11.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Citigroup vs. FMGAU 6125 15 APR 32
Performance |
| Timeline |
| Citigroup |
| FMGAU 6125 15 |
Citigroup and FMGAU Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and FMGAU
The main advantage of trading using opposite Citigroup and FMGAU positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, FMGAU 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 FMGAU will offset losses from the drop in FMGAU's long position.| Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal | Citigroup vs. Bank of Nova |
| FMGAU vs. NETGEAR | FMGAU vs. Playtika Holding Corp | FMGAU vs. Primo Brands | FMGAU vs. Sphere Entertainment 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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