Correlation Between Citigroup and 74166NAA2
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By analyzing existing cross correlation between Citigroup and ADT Corp 4875, you can compare the effects of market volatilities on Citigroup and 74166NAA2 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 74166NAA2. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and 74166NAA2.
Diversification Opportunities for Citigroup and 74166NAA2
Excellent diversification
The 3 months correlation between Citigroup and 74166NAA2 is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and ADT Corp 4875 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ADT Corp 4875 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 74166NAA2. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ADT Corp 4875 has no effect on the direction of Citigroup i.e., Citigroup and 74166NAA2 go up and down completely randomly.
Pair Corralation between Citigroup and 74166NAA2
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.19 times more return on investment than 74166NAA2. However, Citigroup is 1.19 times more volatile than ADT Corp 4875. It trades about 0.29 of its potential returns per unit of risk. ADT Corp 4875 is currently generating about -0.25 per unit of risk. If you would invest 6,122 in Citigroup on August 26, 2024 and sell it today you would earn a total of 862.00 from holding Citigroup or generate 14.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Citigroup vs. ADT Corp 4875
Performance |
| Timeline |
| Citigroup |
| ADT Corp 4875 |
Citigroup and 74166NAA2 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and 74166NAA2
The main advantage of trading using opposite Citigroup and 74166NAA2 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, 74166NAA2 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 74166NAA2 will offset losses from the drop in 74166NAA2's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| 74166NAA2 vs. Sea | 74166NAA2 vs. Lululemon Athletica | 74166NAA2 vs. Alvotech | 74166NAA2 vs. Simon Property Group |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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