Correlation Between Citigroup and 50249AAG8
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By analyzing existing cross correlation between Citigroup and LYB 225 01 OCT 30, you can compare the effects of market volatilities on Citigroup and 50249AAG8 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 50249AAG8. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and 50249AAG8.
Diversification Opportunities for Citigroup and 50249AAG8
Pay attention - limited upside
The 3 months correlation between Citigroup and 50249AAG8 is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and LYB 225 01 OCT 30 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LYB 225 01 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 50249AAG8. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LYB 225 01 has no effect on the direction of Citigroup i.e., Citigroup and 50249AAG8 go up and down completely randomly.
Pair Corralation between Citigroup and 50249AAG8
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.28 times more return on investment than 50249AAG8. However, Citigroup is 2.28 times more volatile than LYB 225 01 OCT 30. It trades about 0.21 of its potential returns per unit of risk. LYB 225 01 OCT 30 is currently generating about 0.06 per unit of risk. If you would invest 6,255 in Citigroup on August 24, 2024 and sell it today you would earn a total of 640.00 from holding Citigroup or generate 10.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 86.96% |
| Values | Daily Returns |
Citigroup vs. LYB 225 01 OCT 30
Performance |
| Timeline |
| Citigroup |
| LYB 225 01 |
Citigroup and 50249AAG8 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and 50249AAG8
The main advantage of trading using opposite Citigroup and 50249AAG8 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, 50249AAG8 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 50249AAG8 will offset losses from the drop in 50249AAG8's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| 50249AAG8 vs. Evertz Technologies Limited | 50249AAG8 vs. Transocean | 50249AAG8 vs. Western Digital | 50249AAG8 vs. Digi International |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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