Correlation Between Citigroup and 404280CE7
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By analyzing existing cross correlation between Citigroup and HSBC HOLDINGS PLC, you can compare the effects of market volatilities on Citigroup and 404280CE7 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 404280CE7. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and 404280CE7.
Diversification Opportunities for Citigroup and 404280CE7
Very good diversification
The 3 months correlation between Citigroup and 404280CE7 is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and HSBC HOLDINGS PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HSBC HOLDINGS PLC 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 404280CE7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HSBC HOLDINGS PLC has no effect on the direction of Citigroup i.e., Citigroup and 404280CE7 go up and down completely randomly.
Pair Corralation between Citigroup and 404280CE7
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.75 times more return on investment than 404280CE7. However, Citigroup is 2.75 times more volatile than HSBC HOLDINGS PLC. It trades about 0.23 of its potential returns per unit of risk. HSBC HOLDINGS PLC is currently generating about -0.76 per unit of risk. If you would invest 6,360 in Citigroup on August 27, 2024 and sell it today you would earn a total of 624.00 from holding Citigroup or generate 9.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 19.05% |
| Values | Daily Returns |
Citigroup vs. HSBC HOLDINGS PLC
Performance |
| Timeline |
| Citigroup |
| HSBC HOLDINGS PLC |
Citigroup and 404280CE7 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and 404280CE7
The main advantage of trading using opposite Citigroup and 404280CE7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, 404280CE7 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 404280CE7 will offset losses from the drop in 404280CE7's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
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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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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