Correlation Between Citigroup and STATE
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By analyzing existing cross correlation between Citigroup and STATE STREET P, you can compare the effects of market volatilities on Citigroup and STATE 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 STATE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and STATE.
Diversification Opportunities for Citigroup and STATE
Pay attention - limited upside
The 3 months correlation between Citigroup and STATE is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and STATE STREET P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STATE STREET P 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 STATE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STATE STREET P has no effect on the direction of Citigroup i.e., Citigroup and STATE go up and down completely randomly.
Pair Corralation between Citigroup and STATE
Taking into account the 90-day investment horizon Citigroup is expected to generate 4.99 times more return on investment than STATE. However, Citigroup is 4.99 times more volatile than STATE STREET P. It trades about 0.21 of its potential returns per unit of risk. STATE STREET P is currently generating about 0.17 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 | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Citigroup vs. STATE STREET P
Performance |
| Timeline |
| Citigroup |
| STATE STREET P |
Citigroup and STATE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and STATE
The main advantage of trading using opposite Citigroup and STATE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, STATE 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 STATE will offset losses from the drop in STATE's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| STATE vs. Molson Coors Brewing | STATE vs. Compania Cervecerias Unidas | STATE vs. Vita Coco | STATE vs. Abcellera Biologics |
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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