Correlation Between Citigroup and MICROSOFT
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By analyzing existing cross correlation between Citigroup and MICROSOFT PORATION, you can compare the effects of market volatilities on Citigroup and MICROSOFT 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 MICROSOFT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and MICROSOFT.
Diversification Opportunities for Citigroup and MICROSOFT
Significant diversification
The 3 months correlation between Citigroup and MICROSOFT is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and MICROSOFT PORATION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MICROSOFT PORATION 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 MICROSOFT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MICROSOFT PORATION has no effect on the direction of Citigroup i.e., Citigroup and MICROSOFT go up and down completely randomly.
Pair Corralation between Citigroup and MICROSOFT
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.07 times more return on investment than MICROSOFT. However, Citigroup is 1.07 times more volatile than MICROSOFT PORATION. It trades about 0.32 of its potential returns per unit of risk. MICROSOFT PORATION is currently generating about 0.23 per unit of risk. If you would invest 6,235 in Citigroup on September 5, 2024 and sell it today you would earn a total of 907.00 from holding Citigroup or generate 14.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Citigroup vs. MICROSOFT PORATION
Performance |
| Timeline |
| Citigroup |
| MICROSOFT PORATION |
Citigroup and MICROSOFT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and MICROSOFT
The main advantage of trading using opposite Citigroup and MICROSOFT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, MICROSOFT 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 MICROSOFT will offset losses from the drop in MICROSOFT's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| MICROSOFT vs. Neogen | MICROSOFT vs. Abcellera Biologics | MICROSOFT vs. Alvotech | MICROSOFT vs. Sellas Life Sciences |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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