Correlation Between Citigroup and 548661EJ2
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By analyzing existing cross correlation between Citigroup and LOW 425 01 APR 52, you can compare the effects of market volatilities on Citigroup and 548661EJ2 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 548661EJ2. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and 548661EJ2.
Diversification Opportunities for Citigroup and 548661EJ2
Very good diversification
The 3 months correlation between Citigroup and 548661EJ2 is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and LOW 425 01 APR 52 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LOW 425 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 548661EJ2. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LOW 425 01 has no effect on the direction of Citigroup i.e., Citigroup and 548661EJ2 go up and down completely randomly.
Pair Corralation between Citigroup and 548661EJ2
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.52 times less return on investment than 548661EJ2. But when comparing it to its historical volatility, Citigroup is 1.31 times less risky than 548661EJ2. It trades about 0.18 of its potential returns per unit of risk. LOW 425 01 APR 52 is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 8,061 in LOW 425 01 APR 52 on September 12, 2024 and sell it today you would earn a total of 377.00 from holding LOW 425 01 APR 52 or generate 4.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Citigroup vs. LOW 425 01 APR 52
Performance |
| Timeline |
| Citigroup |
| LOW 425 01 |
Citigroup and 548661EJ2 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and 548661EJ2
The main advantage of trading using opposite Citigroup and 548661EJ2 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, 548661EJ2 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 548661EJ2 will offset losses from the drop in 548661EJ2's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| 548661EJ2 vs. China Aircraft Leasing | 548661EJ2 vs. Fortress Transp Infra | 548661EJ2 vs. United Rentals | 548661EJ2 vs. First Ship Lease |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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