Correlation Between Citigroup and SEMPRA
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By analyzing existing cross correlation between Citigroup and SEMPRA ENERGY 325, you can compare the effects of market volatilities on Citigroup and SEMPRA 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 SEMPRA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and SEMPRA.
Diversification Opportunities for Citigroup and SEMPRA
Excellent diversification
The 3 months correlation between Citigroup and SEMPRA is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and SEMPRA ENERGY 325 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEMPRA ENERGY 325 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 SEMPRA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEMPRA ENERGY 325 has no effect on the direction of Citigroup i.e., Citigroup and SEMPRA go up and down completely randomly.
Pair Corralation between Citigroup and SEMPRA
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.18 times more return on investment than SEMPRA. However, Citigroup is 2.18 times more volatile than SEMPRA ENERGY 325. It trades about 0.25 of its potential returns per unit of risk. SEMPRA ENERGY 325 is currently generating about -0.23 per unit of risk. If you would invest 6,360 in Citigroup on August 28, 2024 and sell it today you would earn a total of 715.00 from holding Citigroup or generate 11.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 81.82% |
| Values | Daily Returns |
Citigroup vs. SEMPRA ENERGY 325
Performance |
| Timeline |
| Citigroup |
| SEMPRA ENERGY 325 |
Citigroup and SEMPRA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and SEMPRA
The main advantage of trading using opposite Citigroup and SEMPRA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, SEMPRA 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 SEMPRA will offset losses from the drop in SEMPRA's long position.| Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal | Citigroup vs. Bank of Nova |
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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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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