Correlation Between Citigroup and MYLAN
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By analyzing existing cross correlation between Citigroup and MYLAN N V, you can compare the effects of market volatilities on Citigroup and MYLAN 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 MYLAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and MYLAN.
Diversification Opportunities for Citigroup and MYLAN
Very good diversification
The 3 months correlation between Citigroup and MYLAN is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and MYLAN N V in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MYLAN N V 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 MYLAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MYLAN N V has no effect on the direction of Citigroup i.e., Citigroup and MYLAN go up and down completely randomly.
Pair Corralation between Citigroup and MYLAN
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.38 times more return on investment than MYLAN. However, Citigroup is 1.38 times more volatile than MYLAN N V. It trades about 0.08 of its potential returns per unit of risk. MYLAN N V is currently generating about 0.03 per unit of risk. If you would invest 4,525 in Citigroup on August 31, 2024 and sell it today you would earn a total of 2,562 from holding Citigroup or generate 56.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.93% |
| Values | Daily Returns |
Citigroup vs. MYLAN N V
Performance |
| Timeline |
| Citigroup |
| MYLAN N V |
Citigroup and MYLAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and MYLAN
The main advantage of trading using opposite Citigroup and MYLAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, MYLAN 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 MYLAN will offset losses from the drop in MYLAN's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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