Correlation Between Citigroup and MGMCHI
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By analyzing existing cross correlation between Citigroup and MGMCHI 475 01 FEB 27, you can compare the effects of market volatilities on Citigroup and MGMCHI 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 MGMCHI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and MGMCHI.
Diversification Opportunities for Citigroup and MGMCHI
Good diversification
The 3 months correlation between Citigroup and MGMCHI is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and MGMCHI 475 01 FEB 27 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MGMCHI 475 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 MGMCHI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MGMCHI 475 01 has no effect on the direction of Citigroup i.e., Citigroup and MGMCHI go up and down completely randomly.
Pair Corralation between Citigroup and MGMCHI
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.22 times more return on investment than MGMCHI. However, Citigroup is 1.22 times more volatile than MGMCHI 475 01 FEB 27. It trades about 0.21 of its potential returns per unit of risk. MGMCHI 475 01 FEB 27 is currently generating about -0.29 per unit of risk. If you would invest 6,393 in Citigroup on August 31, 2024 and sell it today you would earn a total of 623.00 from holding Citigroup or generate 9.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 54.55% |
| Values | Daily Returns |
Citigroup vs. MGMCHI 475 01 FEB 27
Performance |
| Timeline |
| Citigroup |
| MGMCHI 475 01 |
Citigroup and MGMCHI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and MGMCHI
The main advantage of trading using opposite Citigroup and MGMCHI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, MGMCHI 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 MGMCHI will offset losses from the drop in MGMCHI's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| MGMCHI vs. FitLife Brands, Common | MGMCHI vs. Bridgford Foods | MGMCHI vs. Nextnav Acquisition Corp | MGMCHI vs. Tyson Foods |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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