Correlation Between Citigroup and 539830BS7
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By analyzing existing cross correlation between Citigroup and LMT 415 15 JUN 53, you can compare the effects of market volatilities on Citigroup and 539830BS7 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 539830BS7. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and 539830BS7.
Diversification Opportunities for Citigroup and 539830BS7
Excellent diversification
The 3 months correlation between Citigroup and 539830BS7 is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and LMT 415 15 JUN 53 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LMT 415 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 539830BS7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LMT 415 15 has no effect on the direction of Citigroup i.e., Citigroup and 539830BS7 go up and down completely randomly.
Pair Corralation between Citigroup and 539830BS7
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.36 times more return on investment than 539830BS7. However, Citigroup is 1.36 times more volatile than LMT 415 15 JUN 53. It trades about 0.23 of its potential returns per unit of risk. LMT 415 15 JUN 53 is currently generating about 0.04 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. LMT 415 15 JUN 53
Performance |
| Timeline |
| Citigroup |
| LMT 415 15 |
Citigroup and 539830BS7 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and 539830BS7
The main advantage of trading using opposite Citigroup and 539830BS7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, 539830BS7 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 539830BS7 will offset losses from the drop in 539830BS7's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| 539830BS7 vs. AEP TEX INC | 539830BS7 vs. US BANK NATIONAL | 539830BS7 vs. 3M Company | 539830BS7 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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