Correlation Between Citigroup and PRIME
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By analyzing existing cross correlation between Citigroup and PRIME SEC SVCS, you can compare the effects of market volatilities on Citigroup and PRIME 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 PRIME. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and PRIME.
Diversification Opportunities for Citigroup and PRIME
Very good diversification
The 3 months correlation between Citigroup and PRIME is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and PRIME SEC SVCS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PRIME SEC SVCS 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 PRIME. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PRIME SEC SVCS has no effect on the direction of Citigroup i.e., Citigroup and PRIME go up and down completely randomly.
Pair Corralation between Citigroup and PRIME
Taking into account the 90-day investment horizon Citigroup is expected to generate 16.73 times less return on investment than PRIME. But when comparing it to its historical volatility, Citigroup is 28.45 times less risky than PRIME. It trades about 0.07 of its potential returns per unit of risk. PRIME SEC SVCS is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 9,042 in PRIME SEC SVCS on September 3, 2024 and sell it today you would earn a total of 416.00 from holding PRIME SEC SVCS or generate 4.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.14% |
| Values | Daily Returns |
Citigroup vs. PRIME SEC SVCS
Performance |
| Timeline |
| Citigroup |
| PRIME SEC SVCS |
Citigroup and PRIME Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and PRIME
The main advantage of trading using opposite Citigroup and PRIME positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, PRIME 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 PRIME will offset losses from the drop in PRIME'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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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