Correlation Between Citigroup and STANLN
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By analyzing existing cross correlation between Citigroup and STANLN 7767 16 NOV 28, you can compare the effects of market volatilities on Citigroup and STANLN 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 STANLN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and STANLN.
Diversification Opportunities for Citigroup and STANLN
Average diversification
The 3 months correlation between Citigroup and STANLN is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and STANLN 7767 16 NOV 28 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STANLN 7767 16 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 STANLN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STANLN 7767 16 has no effect on the direction of Citigroup i.e., Citigroup and STANLN go up and down completely randomly.
Pair Corralation between Citigroup and STANLN
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.87 times more return on investment than STANLN. However, Citigroup is 1.16 times less risky than STANLN. It trades about 0.25 of its potential returns per unit of risk. STANLN 7767 16 NOV 28 is currently generating about -0.31 per unit of risk. If you would invest 6,815 in Citigroup on September 15, 2024 and sell it today you would earn a total of 286.00 from holding Citigroup or generate 4.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 47.62% |
| Values | Daily Returns |
Citigroup vs. STANLN 7767 16 NOV 28
Performance |
| Timeline |
| Citigroup |
| STANLN 7767 16 |
Citigroup and STANLN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and STANLN
The main advantage of trading using opposite Citigroup and STANLN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, STANLN 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 STANLN will offset losses from the drop in STANLN's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| STANLN vs. Summit Environmental | STANLN vs. ArcelorMittal SA ADR | STANLN vs. Sun Life Financial | STANLN vs. Osaka Steel Co, |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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