Correlation Between Citigroup and 718172DB2
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By analyzing existing cross correlation between Citigroup and PM 5375 15 FEB 33, you can compare the effects of market volatilities on Citigroup and 718172DB2 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 718172DB2. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and 718172DB2.
Diversification Opportunities for Citigroup and 718172DB2
Pay attention - limited upside
The 3 months correlation between Citigroup and 718172DB2 is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and PM 5375 15 FEB 33 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PM 5375 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 718172DB2. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PM 5375 15 has no effect on the direction of Citigroup i.e., Citigroup and 718172DB2 go up and down completely randomly.
Pair Corralation between Citigroup and 718172DB2
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.26 times more return on investment than 718172DB2. However, Citigroup is 2.26 times more volatile than PM 5375 15 FEB 33. It trades about 0.07 of its potential returns per unit of risk. PM 5375 15 FEB 33 is currently generating about 0.02 per unit of risk. If you would invest 4,360 in Citigroup on August 28, 2024 and sell it today you would earn a total of 2,715 from holding Citigroup or generate 62.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.97% |
| Values | Daily Returns |
Citigroup vs. PM 5375 15 FEB 33
Performance |
| Timeline |
| Citigroup |
| PM 5375 15 |
Citigroup and 718172DB2 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and 718172DB2
The main advantage of trading using opposite Citigroup and 718172DB2 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, 718172DB2 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 718172DB2 will offset losses from the drop in 718172DB2's long position.The idea behind Citigroup and PM 5375 15 FEB 33 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 718172DB2 vs. AEP TEX INC | 718172DB2 vs. US BANK NATIONAL | 718172DB2 vs. 3M Company | 718172DB2 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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