Correlation Between Citigroup and BATSLN
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By analyzing existing cross correlation between Citigroup and BATSLN 475 01 NOV 42, you can compare the effects of market volatilities on Citigroup and BATSLN 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 BATSLN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and BATSLN.
Diversification Opportunities for Citigroup and BATSLN
Very good diversification
The 3 months correlation between Citigroup and BATSLN is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and BATSLN 475 01 NOV 42 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BATSLN 475 01 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 BATSLN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BATSLN 475 01 has no effect on the direction of Citigroup i.e., Citigroup and BATSLN go up and down completely randomly.
Pair Corralation between Citigroup and BATSLN
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.75 times more return on investment than BATSLN. However, Citigroup is 1.33 times less risky than BATSLN. It trades about 0.21 of its potential returns per unit of risk. BATSLN 475 01 NOV 42 is currently generating about -0.07 per unit of risk. If you would invest 6,393 in Citigroup on August 31, 2024 and sell it today you would earn a total of 623.00 from holding Citigroup or generate 9.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 40.91% |
| Values | Daily Returns |
Citigroup vs. BATSLN 475 01 NOV 42
Performance |
| Timeline |
| Citigroup |
| BATSLN 475 01 |
Citigroup and BATSLN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and BATSLN
The main advantage of trading using opposite Citigroup and BATSLN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, BATSLN 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 BATSLN will offset losses from the drop in BATSLN's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| BATSLN vs. Q2 Holdings | BATSLN vs. Ecolab Inc | BATSLN vs. Definitive Healthcare Corp | BATSLN vs. Sealed Air |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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