Correlation Between Citigroup and SIMON
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By analyzing existing cross correlation between Citigroup and SIMON PPTY GROUP, you can compare the effects of market volatilities on Citigroup and SIMON 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 SIMON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and SIMON.
Diversification Opportunities for Citigroup and SIMON
Excellent diversification
The 3 months correlation between Citigroup and SIMON is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and SIMON PPTY GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIMON PPTY GROUP 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 SIMON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIMON PPTY GROUP has no effect on the direction of Citigroup i.e., Citigroup and SIMON go up and down completely randomly.
Pair Corralation between Citigroup and SIMON
Taking into account the 90-day investment horizon Citigroup is expected to generate 150.46 times less return on investment than SIMON. But when comparing it to its historical volatility, Citigroup is 80.17 times less risky than SIMON. It trades about 0.06 of its potential returns per unit of risk. SIMON PPTY GROUP is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 8,507 in SIMON PPTY GROUP on September 1, 2024 and sell it today you would lose (516.00) from holding SIMON PPTY GROUP or give up 6.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 61.76% |
| Values | Daily Returns |
Citigroup vs. SIMON PPTY GROUP
Performance |
| Timeline |
| Citigroup |
| SIMON PPTY GROUP |
Citigroup and SIMON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and SIMON
The main advantage of trading using opposite Citigroup and SIMON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, SIMON 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 SIMON will offset losses from the drop in SIMON's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| SIMON vs. Comstock Holding Companies | SIMON vs. Black Hills | SIMON vs. Sabre Corpo | SIMON vs. Aegon NV ADR |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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